India's Energy Storage Surge: A 12-Fold Leap by 2032

India is set to witness a substantial increase in energy storage capacity, with projections estimating a rise to 60 GW by 2032. The energy storage sector is rapidly advancing, particularly with battery and pumped storage systems. This growth is crucial to stabilizing the grid amidst expanding renewable energy capacities.

India's energy sector is on the brink of a significant transformation, as an SBI report projects a 12-fold surge in energy storage capacity, potentially reaching 60 GW by the fiscal year 2032. This growth not only outpaces the expansion of renewable energy but also reflects the fast-evolving landscape of energy storage solutions in the country.

The projected increase in variable renewable energy (VRE) share in power generation, expected to triple by FY32, poses challenges to grid stability. The integration of Energy Storage Systems (ESS) is deemed essential to managing this transition, addressing the inherent mismatch between VRE generation and peak demand, which can lead to instability and reliance on fossil fuels.

Key players, such as Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP), are expected to lead the energy storage market. BESS is highlighted for its flexibility and rapid response time, with capacity projected to increase 375-fold to 42 GW by 2032. Despite long development periods, PSPs are drawing investments, offering low operational costs and grid stability enhancements, though the domestic production of battery cells remains a challenge.

Analysts emphasize the importance of reducing dependency on imports, with significant investments in battery manufacturing underway. The projected funding potential for BESS is Rs 3.5 trillion, bolstered by project investments and manufacturing expansion. Additionally, PSPs are expected to attract Rs. 1.2 trillion by FY32, with notable private sector interest depicted in recent partnerships.

(With inputs from agencies.)