New Delhi: India’s electricity sector has reached a pivotal moment where energy storage, grid flexibility, and decisive policy reforms will be critical to sustaining economic growth while meeting climate commitments, senior officials and industry leaders said on Monday.
The observations came at the Indian Power & Energy Storage Conference 2025, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI). The conference, supported by the Ministry of Power, Ministry of New and Renewable Energy (MNRE), and the Central Electricity Authority (CEA), brought together policymakers, regulators, and industry executives to chart a roadmap for managing renewable integration while sustaining thermal power assets.
Shift from Power Surplus to System Sustainability
India currently has over 500 GW of installed electricity capacity, making it the world’s third-largest electricity producer. While renewables now account for more than 50% of installed capacity, thermal power still provides nearly 70% of actual electricity generation.
“India’s energy transition is not only about climate action but also about achieving energy independence and supporting rapid economic growth towards 2047,” said Srikant Nagulapalli, Additional Secretary at the Ministry of Power. He outlined proposals in the forthcoming Electricity (Amendment) Bill aimed at improving distribution efficiency, developing competitive markets, and optimising infrastructure use. Data analytics, AI-enabled grid management, and performance-linked incentives were highlighted as key enablers.
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Distribution Reforms and Digitalisation in Focus
The conference highlighted the distribution sector as a critical area for reform. Experts stressed technology adoption as essential for operational efficiency and financial turnaround.
“Smart metering and smart grids are driving a visible turnaround in the distribution sector by improving billing efficiency, revenue realisation, and consumer empowerment,” said Atul Bali, Director of the National Smart Grid Mission.
Thermal Flexibility and Asset Health
Balancing renewable expansion with thermal plant viability emerged as a key theme. “Flexible operation of thermal power plants is becoming essential with rising renewable penetration, but it must protect plant health and long-term viability,” said Praveen Gupta, Member (Thermal) at the CEA.
Industry representatives raised concerns over technical and financial pressures on existing thermal assets. “Thermal power remains the backbone of India’s electricity system, but increasing flexibility requirements are placing significant stress on assets,” said Dinesh Batra, Co-Chair of FICCI’s Power Committee and Executive VP at Hindustan Power Projects. He called for policy and market frameworks that safeguard existing capacities while enabling smoother renewable integration.
Energy Storage and Market Reforms as Critical Enablers
Speakers emphasised that energy storage, policy clarity, and financial sustainability are essential for a resilient power system. “Energy storage is the missing link in addressing peak demand challenges and maximising renewable utilisation,” said Anil Kumar Pandey, Advisor at Jindal Power Limited, urging policy incentives and rationalised transmission charges to accelerate deployment.
Ashish Mittal, Director of Energy & Commodities at CRISIL, noted, “Digitisation, real-time markets, renovation of existing assets, and flexible operations will be crucial in meeting India’s rapidly evolving demand-supply dynamics.”
The conference concluded with a broad consensus on the need for closer policy-industry collaboration, storage-led flexibility, market-based reforms, and technology-driven transformation, aligning with India’s Viksit Bharat @2047 vision.
