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India Set to Grow Energy Storage 12 times to 60 GW by FY32

India’s energy storage sector is set to grow by over 12 times to 60 GW by FY32, driven by a massive increase in variable renewable energy (VRE) and the need to maintain grid stability, according to an SBICAPS report. With VRE set to triple by 2032, India’s power grid requires advanced storage solutions to prevent grid instability and ensure continuous energy supply.

 

The report indicates that Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP) will form the backbone of this energy storage expansion. BESS capacity is expected to surge 375-fold to 42 GW by FY32, while PSP will grow fourfold to 19 GW over the same period. BESS will likely dominate due to its rapid response capabilities and locational flexibility, while PSP will serve a complementary role, primarily for peak shaving.

 

“The green imperative is pushing India towards a VRE-heavy grid, but this brings challenges,” the report notes, highlighting that storage systems are essential to “quash the diurnal duck curve,” referring to the mismatch between VRE generation and power demand profiles. BESS can store excess renewable energy during peak generation and release it during non-solar hours, reducing reliance on fossil fuels and stabilizing the grid.

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