Centre plans mandatory energy storage for discoms

The Centre is planning to make energy storage purchases mandatory for electricity distribution companies (discoms) as part of their renewable power procurement, as it seeks to reduce clean electricity wastage and improve grid reliability. The government aims to finalise the regulations by March 2027.

Power Secretary Pankaj Agarwal on Thursday said the proposed requirement would apply to licensed utilities, while renewable energy developers would also face mandatory storage integration norms.

Speaking at the Bharat Renewable Energy Summit in New Delhi, Agarwal said the government was earlier examining the minimum storage requirement, with proposals involving 10% and 20% storage capacity for two-hour durations. However, the final requirement is yet to be decided.

The government expects stakeholder consultations and notification of the regulations to be completed within three months, targeting the end of the current financial year.

Agarwal said the existing advisory for renewable energy developers to integrate storage would be converted into mandatory regulations, alongside procurement-related requirements for utilities.

The move comes a day after the Union Cabinet approved Rs 14,500 crore in viability gap funding to support 92 gigawatt-hours of energy storage capacity by FY31, including batteries, pumped hydro and emerging technologies.

The proposed mandate comes amid growing renewable energy curtailments. About 11% of solar power generated during the hottest months this year was lost to grid restrictions despite record electricity demand.

Storage systems can absorb surplus renewable generation and release electricity during periods of higher demand, while improving the utilisation of existing transmission infrastructure.