Energy Storage Key to Saving Consumers ₹60,000 Crore Annually

India’s electricity demand is nearly doubling every decade, driven by rapid economic growth. With wind, solar, and battery storage costs having dropped dramatically over the last ten years, India is positioned to leapfrog to a more flexible, resilient, and sustainable power system—delivering affordable, reliable energy to all.

The country recently crossed a major clean energy milestone, achieving 50% of installed capacity from non-fossil sources five years ahead of schedule. A new study—Strategic Pathways for Energy Storage in India Through 2032, released by the India Energy & Climate Centre (IECC), University of California, Berkeley, and the Power Foundation of India—finds that scaling up energy storage rapidly in the next decade could lower consumer power bills by nearly ₹60,000 crore ($7 billion) every year.

Key Findings

• Storage requirement: India will need 61 GW (218 GWh) of storage by 2030 and 97 GW (362 GWh) by 2032—up from today’s 6 GW.

• Clean energy scale-up: Non-fossil capacity will exceed 500 GW by 2030 and reach nearly 600 GW by 2032, with solar and wind forming the backbone.

• Investment needs: About $40–50 billion (₹3–4 lakh crore) in storage by 2032; and $380 billion (₹30 lakh crore) across power generation and grid infrastructure.

• Cost savings: Consumers stand to save nearly ₹60,000 crore annually if storage targets are met.

• Storage evolution: Until 2027, 2-hour batteries will dominate to serve evening peaks; longer-duration solutions will follow.

• Geographic hotspots: Gujarat, Rajasthan, Maharashtra, Uttar Pradesh, Andhra Pradesh, and Telangana will lead storage adoption.

• Cheapest option: Battery storage costs have fallen 65% since 2021, making solar + storage (₹3–₹3.5/kWh) cheaper and faster to deploy than new coal plants.

Risks of Delay

The report warns that if storage deployment lags, India may be forced to build new coal-based capacity as backup—even while meeting its 500 GW clean power target by 2030.

Expert Views

Dr. Nikit Abhyankar, Co-Faculty Director, IECC, said: “We’re already about halfway to our 500 GW target. The next step is to scale energy storage at unprecedented speed to make clean power available around the clock. This requires bold policy and market action, but the payoff is enormous.”

Srikant Nagulapalli, Additional Secretary, Ministry of Power and DG, Power Foundation of India, added: “Energy storage is at the core of India’s clean energy vision. It’s the backbone of a flexible, resilient power system that can harness renewables fully, manage peak demand, and ensure grid stability.”

The Road Ahead

With battery manufacturing expanding globally—now over 5,000 GWh per year, 80% of it in China—India is set to benefit from declining costs and rising supply. The Ministry of Power has already mandated Energy Storage Obligations (ESO), requiring utilities to source 4% of electricity demand from storage by 2030.

The study concludes that clean power, paired with storage, is the lowest-cost path forward for India, ensuring reliability while cutting costs for both utilities and consumers.

The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy