India’s storage-backed renewable energy to hit 25 GW

New Delhi

India’s storage-backed renewable energy (RE) capacity is set to surge to 25–30 gigawatts (GW) by 2027–28, up from near zero in 2024–25, according to a Crisil Ratings report released on Wednesday. This growth will represent over 20 percent of all new RE capacity in the next three years.

Storage-backed RE projects solve the problem of irregular solar and wind power. These systems, like solar with battery storage, help provide stable, on-demand green electricity—especially during peak hours like mornings and evenings.

In 2024, 11 GW (25 percent) of total RE projects awarded by central agencies included energy storage, a sharp rise from just 2.5 GW (11 percent) in 2023. Due to the energy demands, these projects are built larger than needed—around 2.5 times the contracted power—to meet requirements. This has created a 34 GW project pipeline.

While most projects are in early stages or under construction, Crisil expects moderate risk. Nearly half of them already have 25-year power purchase agreements (PPAs) at fixed tariffs, giving long-term revenue certainty. The other half, with higher tariffs, may take longer to secure PPAs.

Still, developers are proactive—70 percent have arranged land and grid connections before bidding. Government support, rising green energy targets, and high power needs increase confidence in completing these projects.

Crisil notes that delays in land or PPA deals could affect timelines, but risks are generally manageable. With strong planning and expected funding, India’s push for greener, more stable electricity is gaining momentum.