Archive · 24 Aug 2026
India weighs storage changes to revive stalled renewable-energy bids
India has auctioned many renewable-energy projects, but some have not found electricity buyers.
The government is considering allowing these projects to change how they supply power without changing their agreed prices.
Some solar developers are adding batteries so electricity can be supplied after sunset.
This may help distribution companies, which want power during more hours of the day.
However, officials do not expect every stalled project to succeed.
Projects that cannot find buyers may eventually be cancelled.
Some developers will be able to leave without losing certain bank guarantees under new regulations.
Too much solar power is sometimes produced during the day, and the grid cannot use all of it.
Batteries and other firm-power projects are expected to become more important as India expands renewable energy.
The government is considering changes to the supply profiles of stalled renewable projects within their discovered tariffs.
Nearly 42 GW of auctioned renewable capacity is still seeking buyers, including 17-18 GW of standalone solar.
Developers are adding battery storage to solar projects to make them more attractive to distribution companies.
Projects that remain unviable could be cancelled, while eligible developers may exit penalty-free under July 2026 regulations.
Solar curtailment reached about 11% during the hottest months, increasing pressure for storage and firm renewable power.
- Who
- The Indian government, Renewable Energy Secretary Santosh Kumar Sarangi, renewable-energy developers, renewable-energy implementing agencies and distribution companies are involved.
- What
- Officials are considering supply-profile changes, including battery storage, to help stalled renewable-energy projects secure buyers within their discovered tariffs.
- When
- The proposal was discussed on Friday; the article also refers to July 2026 regulations and targets through 2030, 2031-32 and 2070.
- Where
- The announcement was made at the BNEF Summit in India.
- Why
- Many auctioned projects have not found offtakers, while distribution companies want power beyond daylight hours and solar curtailment is increasing.
Rescue and adapt projects
Exit or cancel unviable bids
How to address stalled capacity
Rescue and adapt projects
The government and renewable-energy implementing agencies will first seek buyers and may allow changes such as adding battery storage within the discovered tariffs.
Exit or cancel unviable bids
Officials acknowledge that many plain solar bids may not find buyers and could ultimately be cancelled.
Options for developers
Rescue and adapt projects
Developers can make projects more attractive to distribution companies by adding storage and offering power beyond daylight hours.
Exit or cancel unviable bids
For projects that remain unviable, eligible developers may use the penalty-free exit route under the July 2026 regulations, while projects may also face cancellation.
- Stalled capacity
- Nearly 42 GW of auctioned renewable capacity is seeking buyers.
- Standalone solar backlog
- About 17-18 GW of the capacity without offtakers consists of standalone solar projects.
- High-tariff capacity
- Another 14-15 GW was awarded at relatively high tariffs.
- Solar curtailment
- About 11% of solar generation during the hottest months was curtailed.
- Grid absorption
- India’s transmission system could not absorb more than 8 billion kWh during April-June, while 63 billion kWh reached the grid.
- Storage requirement
- India is estimated to need around 411 GWh of storage by 2031-32; about 156 GWh is already under tendering or order-placement processes.
- Round-the-clock tariff
- A recent 1,000-MW round-the-clock renewable tender discovered a tariff of about Rs 5.25 per unit, with 90% assured availability from 6 pm to 10 am.