Rapid energy storage expansion can save Indian consumers ₹60,000 crore annually in power costs: Study

The report found that deploying 500 GW of clean energy capacity by 2030 and over 600 GW by 2032 is India’s most cost-effective path

With India achieving 50% capacity of installed non-fossil energy sources five years ahead of time, there opens up opportunities to capitalise on that. Meeting 2030 goals at the lowest cost, and lowering power prices even as demand increases is possible.

The answer lies in rapid expansion of storage. A new report by the India Energy and Climate Center (IECC) and the Power Foundation of India, found that deploying 500 GW of clean energy capacity by 2030 and over 600 GW by 2032 is India’s most cost-effective path. 

The report, titled ‘Strategic Pathways for Energy Storage in India Through 2032’, found achieving this will require about $380 billion (₹30 lakh crore) in new investment by 2032 across power generation and grid infrastructure. 

If rapid expansion of energy storage is achieved, then consumers would save a total of ₹60,000 crore annually in power costs, found the report.

Ramping up non-fossil and storage

According to the report, India will need 61 GW (218 GWh) of energy storage by 2030 and 97 GW (362 GWh) by 2032. This would require a highly accelerated growth rate from the current capacity of 6 GW (mostly pumped hydro). 

“We’re already about halfway to our 500 GW target,” said Dr. Nikit Abhyankar, lead author of the study and Co-Faculty Director of IECC. “The next step is to scale energy storage at unprecedented speed to make clean power available around the clock. This will require $40-50 billion (₹ 3-4 lakh crore) of investment in storage by 2032, but the payoff is enormous: consumers could save nearly $7 billion (₹60,000 crore) every year in power costs. To get there, India will need bold policy and market action.”

According to the report, clean power paired with storage is now the cheapest way to meet power demand. Battery prices have fallen 65% since 2021, enabling solar and storage projects to deliver consistent, stable power during peak periods at ₹3–₹3.5/kWh.

Construction of these solar and storage projects are also cheaper and don’t take long, at most taking up to 2 years to be built. The report found that it is far cheaper and faster than building new thermal power plants. 

The report found that several new pumped hydro projects are also emerging at similarly competitive prices. As a result, by 2032, average power procurement costs for discoms could decline in real terms, if storage targets are achieved. 

“Energy storage is at the core of India’s clean energy vision. It’s the backbone of a flexible, resilient power system that can handle peak loads, harness the full potential of renewables, and support grid stability. This study offers practical, affordable ways to roll out storage and provides the clarity needed to help us move faster and smarter toward our shared goals,” said Srikant Nagulapalli, Additional Secretary of the Ministry of Power and Director General of the Power Foundation of India.

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