New Delhi, Sep 8 — India’s energy storage requirement is expected to jump nearly 8 times to around 411 GWh by FY32, compared with operational storage capacity of around 54 GWh as of June 2026, a report said on Tuesday.
The targeted storage capacity would require investments of over Rs 4 lakh crore, presenting a significant infrastructure investment opportunity over the next six years, the report from CareEdge Ratings said.
The rating agency noted that energy storage is emerging as a critical enabler by absorbing surplus solar generation during the day and discharging during evening peak hours, thereby smoothing the net load curve, reducing curtailment and easing ramping requirements.
India’s power sector is moving from a capacity addition challenge to an integration challenge, the firm said.
Non-fossil sources accounted for 50 per cent of installed capacity but contributed only nearly 29 per cent of electricity generation, reflecting the intermittency and lower PLFs of renewable sources.
It noted that the rising solar penetration is deepening the “duck curve”, with the morning ramp-down increased from nearly 28 GW in May 2025 to nearly 50 GW in May 2026, while the evening ramp-up from the day’s lowest net load increased from nearly 68 GW to nearly 80 GW.
The trend is increasing pressure on conventional generation and contributing to RE curtailment, with nearly 8.1 TWh of solar generation curtailed in 3MFY27 due to transmission and grid-stability concerns.
“India's power sector is moving beyond the challenge of renewable capacity addition towards ensuring that renewable power can be effectively integrated into the grid. As solar and wind capacity increases, the ability to store surplus energy and deploy it during periods of peak demand will become increasingly critical,” said Sachin Gupta, ED and CRO, CareEdge Ratings.
Tendering activity is also gaining momentum, with nearly 21 GW of standalone-storage based tenders floated in FY26 versus 7 GW in FY25.
Both Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSPs) are expected to play complementary roles, the report noted.
BESS offers modularity, higher efficiency and shorter gestation, while PSPs provide longer-duration storage, longer asset life and lower dependence on imports. The ratings agency estimated the cost of storage from both technologies at around Rs 4.5-5 per unit, excluding input power but factoring in cycle losses.