India is poised to add more than 25 GW of storage-backed renewable energy (RE) capacity by fiscal 2028, a dramatic rise from near-zero levels last fiscal, according to Crisil Ratings. This growth, forming over 20% of total RE additions in the period, is being fueled by a strong central government push to ensure grid stability and long-term sustainability of renewables.
Storage-backed RE projects — such as solar-plus-storage and firm-dispatchable renewables — help overcome the intermittent nature of renewable power by providing scheduled or peak-hour electricity. In 2024, these projects accounted for 25% (11 GW) of the total tendered capacity by central agencies, up from 11% (2.5 GW) in 2023.
While most of the awarded capacity is still under development or in early construction stages, Crisil expects commissioning risks to remain low to moderate. Nearly 50% of projects have secured long-term (25-year) power purchase agreements (PPAs) at fixed tariffs, offering revenue visibility. For the rest, higher tariffs — about 55% above standard RE rates — may delay PPA finalization, though policy support, rising renewable purchase obligations, and higher dispatchability enhance prospects.
Funding risks are also seen as low, thanks to attractive post-commissioning cash flows and strong sponsor profiles. Execution risk is mitigated by proactive resource acquisition, with ~70% of 2024-awarded capacities securing land and grid access before bidding.
Transmission infrastructure enhancements by the government further strengthen the execution outlook, setting the stage for more than 25 GW in cumulative additions by FY28.
