India is making rapid strides toward becoming a clean energy economy. It has become one of the world’s fastest-growing markets for renewable energy and is installing a wind or solar facility every hour. But a growing problem is looming: the grid cannot use up all the renewable electricity being produced.
As per the latest report, India witnessed a loss of about 629 crore worth of renewable energy in FY26 alone due to the bottlenecks of grid, transmission constraints and the lack of energy storage infrastructure. The report emphasizes on the need for about 10 GWh of storage capacity for battery energy storage to avoid this kind of loss in the future.
Renewable Energy Growth Meets Grid Reality
The renewable sector in India had seen a meteoric rise over the last decade with clear advantages of the solar parks, nodal support and rising wind capacities bringing about high penetration of clean fuel mix into the country.
We will also need to address the fact that renewable power generation is intermittent. Solar farms only produce electricity during the day, wind farms only generate power when the wind is blowing. If we can’t store this energy, too much of it will be wasted.
Consequently, power producers are now compelled to reduce renewable generation, and this leads to huge energy wastages and profits erosion. The huge loss of 629 crore recorded in FY26 is one of the best evidences to prove that the pace of expansion of renewable assets in India has overtaken build up of subsequent transmission and storage infrastructure.
Why Renewable Power Is Being Wasted
The main factor causing renewable energy curtailment is the inadequacy of grid capacity compared to the generated power.
A lot of wind and solar projects are located in some of these oft-overlooked, renewable-rich states like Rajasthan and Gujarat. What has not grown in pace with these projects is the transmission infrastructure capable of reaching where the demand is.
According to industry sources, transmission congestion is believed to be an upcoming challenge for renewable penetration. Capital shortages for new transmission projects, delays due to land acquisition and right-of-way issues, equipment shortages etc. Have caused congestion in the system.
Where grid constraints mean that not all the renewable power available can be accepted, operators will have to curtail generation from renewable plant. This means wasting clean power and can impact on project economics and investor confidence.
The Critical Role of Battery Energy Storage
Battery Energy Storage Systems (BESS) are considered to be the most advantageous at this point.
The storage of excess electricity produced when renewables are creating greater output than is needed can be used at a later time to meet the increased demand that occurs at a different time.
According to the most recent estimates, India needs a minimum of 10 GWh of storage capacity right away to avoid wastage of renewable power. Batteries can smooth out the supply at the dispatch end in the event of fluctuating generation from solar/wind and so on and therefore, ensure the availability of at least some renewable electricity.
According to industry experts, the importance of storage is expected to further grow as India accelerates the addition of renewable capacity over next decade.
India’s Massive Energy Storage Ambitions
Knowing, however, that storage will be essential, defined some bold expansion targets.
According to the Central Electricity Authority (CEA), the total energy storage needs of India could be in the hundreds of GWh range in the next ten years. Currently, tremendous potential exists for electrical energy storage with the proposal for a proliferation of utility-scale Battery energy storage system and Pumped-Hydro Storage projects.
Many of these projects are already under construction, with several more going through tendering and project development stages of the project lifecycle. According to industry sources, the Indian Energy Storage pipeline has witnessed a significant rise, with record capacity auctioning and tendering occurring throughout recent years.
The government views energy storage as a key pillar to achieving its long-term clean energy objectives and providing 24/7 renewable power.
Challenges Facing Battery Storage Deployment
Though momentum remains strong it is important to recognize that there are still major obstacles to be overcome.
A key issue is whether battery storage projects are financially viable. Industry research suggests that competitive bidding and declining tariffs have caused many projects to become uneconomic. Developers will be dealing with increasing costs within the supply chain and difficulties raising financing.
A further concern is the reliance of India on imported lithium-ion battery cells. A significant percentage of the battery components are presently being supplied from international markets, which leaves projects exposed to world supply shocks and fluctuations.
Experts believe that to address these problems, existing gaps in the country need to be strengthened and intensified by investment in domestic manufacturing capabilities, policy intervention and creation of specific financial instruments.
Transmission Infrastructure Needs Equal Attention
We cannot only rely on battery storage.
And at the same time, India has to develop transmission and grid infrastructure to deliver renewable power efficiently to the end users. A recent estimate indicates that transmission additions have not kept pace with renewable additions.
The government has already announced massive transmission investments to develop the national grid. Industry experts say that trillions of rupees will be needed in the coming years to upgrade transmission networks and back the mounting demand for power generated from renewables, data centers, electric vehicles and increasing industrialization.
Were transmission to develop at a faster rate, the losses related to the use of renewable energy could continue to increase regardless the capacity of generation.
What This Means for India’s Energy Future
India has large but relatively ambitious plans in terms of expanding renewable energy capacity and trying to diminish reliance on fossil fuels. As shown in the listed points, Indian vision behind these goals goes beyond aggregating solar parks and wind farms.
The 629 crore renewable energy loss in FY26 shows that infrastructure creation has to keep up with generation. Battery storage, improved transmission network and modernization of the grid are now crucial to the clean energy transformation.
By deploying the 10 GWh, India needs for battery storage in addition to fast tracking of upgrading the transmission, the process of circumventing wind wastages needs to be achieved effectively leading to enhancement of the security of the energy sector while minimizing emissions and enabling sustainable economic prosperity.
The nation is about to enter a new chapter in its renewable energy history-a chapter in which the ability to store and deliver clean electricity could be as critical as its ability to produce it.
