Whalesbook
Storage Plan Hits Policy Snag
India is updating its main program for solar power in agriculture, known as PM-KUSUM, to include battery storage. The goal is to fix the timing problem between when solar power is made (during the day) and when farmers need it most (mornings and evenings). Storing extra solar power for later use is key. However, the plan is facing an immediate hurdle: the Ministry of Power wants four hours of battery storage, but the Ministry of New and Renewable Energy (MNRE) suggests only two hours. This disagreement shows how difficult it can be to align different government bodies on energy policy and infrastructure.
Scheme Falls Far Short of Targets
The need for battery storage is urgent partly because the original PM-KUSUM scheme has been slow to get going. Launched in 2019 to reach 34,800 MW of solar power by March 2026, it had only installed about 12,164 MW by February 2026. While standalone solar pumps (Component B) have seen good progress, overall targets are only about 30% met. Major issues like high land costs, problems with farmer financing, and poor coordination have held back larger rollouts. Extensions for project deadlines show that these challenges are being recognized, and they will likely be addressed in the new PM-KUSUM 2.0 plans.
Battery Costs Plummet, Driving Storage Push
However, battery storage is becoming much cheaper, which is a major reason it's being considered. In India, the cost for battery storage systems has dropped sharply. Tariffs fell from about ₹10.18 per kilowatt-hour (kWh) in 2022-23 to roughly ₹2.1 per kWh in recent bids, even without subsidies. Market data shows storage costs around ₹2.8 per kWh for typical use, making it competitive with solar power prices. Government support, like Viability Gap Funding (VGF) and waived transmission charges for linked projects, is also encouraging storage development. India has also set targets for utilities to store 4% of electricity demand by 2030, indicating a strong future market for storage.
Policy Divisions and Execution Risks Remain
This push for better storage comes amid ongoing changes in how renewable energy is managed in India. The MNRE wants more control over planning, market rules, and pricing for renewables, aiming for a clearer role separate from the Ministry of Power. This turf battle, shown by the storage hour dispute for PM-KUSUM 2.0, could lead to confused policies and further delays. There are also worries about low bids in storage auctions and slow progress on power deals and grid connections. Combined with the PM-KUSUM scheme's past struggles to meet its goals, these issues mean that new technology like battery storage won't succeed without strong policy agreement and practical execution on the ground.
Path Ahead: Balancing Policy and Growth
India aims to reach 500 GW of non-fossil fuel energy by 2030, making energy storage crucial. Combining solar power with farming on the same land (agrivoltaics) also offers a promising path in the agricultural sector. But for PM-KUSUM 2.0 and similar projects to succeed, they need more than just affordable technology like batteries. They must resolve disagreements between government ministries and fix the execution problems that have slowed India's renewable energy progress. The sector is set for major growth, with solar power adding capacity quickly. However, overcoming regulatory issues and ensuring projects are built effectively will be vital to meeting the country's clean energy targets.