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The second panel discussion at the Solar Trailblazers in Pune brought together industry leaders to unpack one central question: is India’s rapid shift towards storage-backed renewables sustainable, or heading towards another cycle of over-optimism?
Featuring
Aditya Malpani – Sr Director AMPIN Energy Transition
 
Ravi Kaushal – GM, TrueRe Oriana Power
 
Rohan Upasani – DIrector, Carbmann Sustainability LLP
India’s renewable tender landscape has undergone a sharp shift over the past year. According to Kartikeya N Sharma, most recent tenders have moved away from standalone solar to solar-plus-storage or hybrid formats.
This transition was triggered by weak discom interest in pure solar procurement, pushing agencies like Solar Energy Corporation of India to prioritise round-the-clock (RTC) and storage-linked bids. However, rising tariffs—ranging between INR 4 to INR 8 per unit—have created regulatory hesitation, slowing power purchase agreement (PPA) signings.
The result is a disconnect between developers, investors, and regulators, each operating with different expectations on pricing and viability.
A key concern raised during the session was whether the surge in battery energy storage system (BESS) tenders will translate into actual projects.
Sharma noted that many standalone storage projects—especially those bid at aggressively low tariffs—may not materialise. He estimated that only a fraction of such projects could reach execution stage, particularly those below commercially viable thresholds.
Aditya Malpani echoed this caution, pointing to global parallels where aggressive bidding cycles led to project failures. While battery costs have declined significantly—from around USD 220/kWh to nearly USD 100/kWh—the assumption of continued rapid price drops may not hold.
Despite this, the panel agreed that storage is no longer optional. Demand is shifting structurally towards hybrid solutions, especially in the commercial and industrial (C&I) segment.
One of the most striking insights from the discussion was the shift in project economics. A typical 1 MW renewable project that earlier required INR 4–5 crore now demands nearly three times the investment when bundled with wind and storage.
This is driven by the need for higher capacity utilisation factors (CUF), moving from around 25–30 percent to nearly 70–75 percent in RTC configurations.
As a result, developers are rethinking portfolio strategies. Solar remains dominant, but wind and storage are increasingly becoming integral components rather than add-ons.
Interestingly, wind energy emerged as a critical piece of the future renewable mix. While historically overshadowed by solar, wind is now regaining importance due to its ability to generate power during non-solar hours.
Malpani highlighted that India’s peak demand patterns make wind a natural complement to solar. With over 120 GW of solar already installed, midday generation is often surplus, shifting value to evening and nighttime supply—where wind plays a key role.
However, execution challenges remain significant, including land access, transmission constraints, and logistical complexities.
Policy inconsistency emerged as a major concern, particularly in Maharashtra. Changes in banking norms—from 17 hours to 8 hours—have created uncertainty for existing projects, especially those structured under earlier assumptions.
Malpani stressed that retrospective policy changes risk undermining investor confidence. He suggested a middle-ground approach, including reasonable banking charges, rather than abrupt regulatory shifts.
The role of Maharashtra State Electricity Distribution Company Limited (MSEDCL) was also discussed, with acknowledgment that utilities face their own financial pressures, especially when balancing low-cost solar procurement with high-cost peak supply obligations.
The panel also addressed the widely discussed issue of solar curtailment. While headline figures suggest curtailment rates of up to 20 percent, Sharma clarified that the actual annual impact on projects is closer to 1–2 percent.
Curtailment is largely linked to transmission bottlenecks and temporary grid constraints rather than systemic oversupply.
Here, storage offers a clear solution. Developers are increasingly deploying BESS to store excess generation and release it during peak demand, reducing reliance on transmission upgrades that can take years to build.
This is also expected to create a new business segment—battery leasing and storage-as-a-service—mirroring trends in global markets.
Maharashtra’s evolving policy framework is positioning it as a critical market for storage-backed solutions. With BESS becoming mandatory in certain cases, developers are seeing both opportunities and challenges.
Rohan Upasani noted that while storage increases capital costs, it also enhances system stability, reduces voltage fluctuations, and improves return on investment through peak shaving.
Demand is expected to grow across multiple segments, including C&I, hospitality, and even residential users seeking energy independence.
The discussion also highlighted emerging risks around battery quality and financing. With a wide range of manufacturers entering the market, concerns over performance, safety, and lifecycle reliability are growing.
Panelists emphasised the need for regulatory frameworks similar to solar’s ALMM to ensure quality standards in battery procurement.
Financing remains another hurdle. The addition of storage can double project costs, making access to capital more challenging, particularly for smaller developers.
The overarching takeaway from Panel 2 was clear: India’s renewable energy journey is entering a more complex phase.
Standalone solar is no longer sufficient. The future lies in integrated solutions—solar, wind, and storage—designed to deliver reliable, dispatchable power.
While challenges around tariffs, policy stability, and financing persist, the direction of the market is unlikely to reverse. Storage is not just an add-on anymore; it is becoming the backbone of India’s next phase of energy transition.
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