Green’ power capacity outpaces thermal, but storage woes weigh on grid stability

India’s Key Milestone

• 50.1% of India’s installed electricity capacity now comes from non-fossil fuel sources.
  • Target achieved 5 years ahead of 2030 Paris commitment (40% originally, revised to 50% in 2022).

Relevance : GS 3(Energy and Environment)

Installed Capacity (in GW)

• Total Installed Capacity (2025): 484.82 GW
• Thermal Share: 49.9% (still dominant in absolute capacity)

Thermal Still Dominates

• Despite non-fossil surpassing in % share, thermal plants are critical for base load.
• India’s thermal capacity rose by just 11 GW in 5 years, but still forms the grid backbone.

Storage Capacity – Major Bottleneck

• India’s storage capacity (2024):
  • Pumped Hydro: 4.75 GW
  • Battery Storage: 110 MW
  • Total < 5 GW, insufficient for smooth renewable integration.

Grid Instability Events

• May 30, 2024: Peak demand unmet due to low renewables and lack of backup.
• Erratic pricing and curtailments seen when solar/wind exceeds demand.

Policy Measures Underway

• CEA Advisory (Feb 2025): Co-locate storage with solar.
• Viability Gap Funding Scheme:
  • ₹5,400 crore for 31 GWh battery storage.
  • 51 GWh pumped hydro expected by 2032.
• ISTS Waiver Extended till June 2028 to boost storage projects.

Strategic Implications

• Capacity milestone ≠ energy transition success.
• Storage, grid flexibility, and real-time pricing are the next frontiers.
• India needs policy speed, not just policy vision, to match non-fossil growth with reliability.