India Industrial Energy Storage Policy

Does India's energy policy framework exclude energy storage?

India's energy policy framework largely excludes energy storage from key programs and initiatives. The lack of policy guidelines and supporting programs to direct the scope and scale of energy storage deployment present a barrier for investments.

Should energy storage be regulated in India?

India's existing regulations present a useful framework for enabling energy storage deployment; however, current regulations that explicitly restrict storage from providing services or earning revenue for those services present a barrier to maximizing the cost-effective value of storage investments.

How can Indian policymakers broaden the role of energy storage?

If Indian policymakers want to broaden the role of energy storage in the power system, an important first step is to include energy storage in national energy policies and programs.

Why is energy storage important in India?

The technical system characteristics of the Indian power system are favorable for energy storage to reduce operating cost and improve system reliability. Storage can provide energy arbitrage, ancillary services, and potentially defer transmission investments, but existing policy and regulatory barriers may limit these opportunities.

How often should energy storage be used in India?

To maximize this opportunity, the appropriate storage technology would require daily or twice-daily cycling with up to 4 hours of discharge capability. India's energy policy framework largely excludes energy storage from key programs and initiatives.

What is the Indian government doing for energy storage research?

In parallel, India’s Department of Science and Technology has provided research funding for energy storage since 2009 through its Clean Energy Research Initiative (IEA 2020b).