Recommendations cover grid integration, supply chain security, second-life batteries, and market reforms

As India prepares to meet 50 per cent of its electricity demand from renewable sources by 2030, the India Energy Storage Alliance (IESA) has submitted a comprehensive policy and regulatory framework to the government to accelerate the deployment of energy storage solutions across the country.

“With a population of over 1.4 billion and growing economic activity, India is projected to account for 40 per cent of the world’s additional energy demand by 2040,” IESA said in a statement. To meet this demand while reducing emissions, grid flexibility and stability will be critical.

“In light of the Indian government’s commitment to achieving 50 per cent renewable electricity by 2030, IESW 2025 serves as a pivotal platform for the energy sector,” said Vinayak Walimbe, Managing Director, Customized Energy Solutions (CES). “The recently proposed framework by IESA is a crucial measure to enhance energy storage deployment across the country.”

The Alliance highlighted the importance of mapping supply chain vulnerabilities as India scales its energy storage ambitions. It urged the government to undertake a material security study to assess short-, medium-, and long-term access to critical raw materials needed for battery and storage systems.

“We’re on the brink of a transformative shift,” said Debmalya Sen, President, IESA. “This framework—backed by insights from over 25 industry leaders—is about ensuring innovation, safety, and a secure energy future. It will not only enhance grid stability but also move us closer to our renewable energy goals.”

To ensure energy storage is not treated in isolation, the industry body recommends that storage system planning be integrated with transmission, distribution, and generation planning. State-level involvement should be strengthened, with greater coordination among national and regional load dispatch centres.

IESA also called for penalties on load-shedding by distribution utilities, urging them to maintain reserves and actively participate in grid planning instead of relying on curtailments to balance variability.

The policy submission stresses the need for reuse and recycling frameworks, particularly for EV batteries that can be repurposed for stationary storage. It urged collaboration among the Ministries of Environment, Power, and New and Renewable Energy to develop licensing norms and guidelines for second-life batteries.

On the market front, IESA highlighted India’s underdeveloped ancillary services market and called for swift implementation of the draft Indian Electricity Grid Code (IEGC) 2022, enabling energy storage to participate in primary reserves. Drawing lessons from the UK model, the Alliance suggested categorizing response times to incentivize adoption of fast-acting technologies.

Additional recommendations include:
Lowering entry barriers for emerging technologies
Reducing import duties and GST on storage components
A robust compliance framework for energy storage obligations (ESOs)
Technical standards for operating storage systems in India’s tropical climate