The Central Electricity Authority (CEA) has proposed mandatory installation of energy storage systems for all ground-mounted solar power and wind power projects to be commissioned after July 2027. According to the latest draft regulations, projects commissioned after July 2027 must be equipped with energy storage having a minimum storage duration of two hours and a capacity of at least 10% of the installed capacity of the plant. The requirements will become stricter over time, with projects commissioned after July 2029 and up to June 2031 required to have energy storage with a minimum storage duration of four hours. The draft regulations assume significance given the challenges of grid stability with increasing penetration of infirm power from renewable energy sources, as the grid currently struggles to absorb excess solar generation during solar hours, resulting in significant curtailment.
A committee formed by the Central Electricity Authority (CEA) has recommended significant operational changes for thermal power plants to address wear and tear concerns. According to reports from Business Standard, the committee proposed avoiding consecutive ramp-up and ramp-down of the same units and instead selecting groups of units for ramping operations. The committee recommended ramping down to minimum technical levels (MTL) and minimum load operations during solar hours and ramping up in the evening when solar generation declines. These recommendations aim to reduce operational and maintenance costs while extending plant lifespan. The committee also proposed introducing "ramping" and "stable-load" blocks to give thermal plants the time to gradually change and stabilise generation, reducing the cost of operation & maintenance (O&M) and extending their operational life.
The committee's analysis reveals substantial cost implications for grid operations. As reported by Business Standard, the potential from two-shifting could provide 27 GW of virtual storage capacity at a cost of approximately ₹30,200-37,750 crore, compared to equivalent battery energy storage system (BESS) capacity that would cost approximately ₹1,75,500 crore. The committee noted that the Merit Order Despatch (MOD) may need review to adopt these recommendations, which would reduce operational and maintenance costs and extend plant operational life. The two-shift operation provides a low-cost alternative for integrating renewables compared to BESS, with the committee estimating this could extend their operating life by 12-15 years.
India's renewable energy sector faces significant grid stability challenges that are driving the need for comprehensive storage solutions. According to the latest CEA data, India curtailed 8,133 GWh of solar power output between April and June 2026, highlighting the urgent need for storage infrastructure. The draft regulations address these challenges by requiring at least 15% of inverters with grid-forming control for renewable energy power plants commissioned after July 2027. Energy storage addresses the demand and supply mismatch by storing electricity when there is excess renewable power generation and discharging power during peak demand hours when clean power supply is comparatively lower. The regulations also mandate that any change in the percentage requirement for grid-forming capabilities or energy storage capacity shall be notified by the Authority from time to time.
The committee has outlined a comprehensive implementation timeline for operational changes. As reported by Business Standard, the committee recommended enabling two-shift operations by 2030 for 151 old coal-based units totaling 34.5 GW that are aged 35 years or more. The CEA has initiated pilot studies at Tamil Nadu's 5x210 MW Tuticorin Thermal Power Station and recommended further studies at the 210 MW Wanakbori plant in Gujarat and the 2x67.5 MW Southern station in Kolkata. All stakeholders and the general public are required to send their comments on the draft regulations by October 4, 2026, indicating the comprehensive nature of these proposed changes to India's power sector operations.
The committee has proposed significant changes to the existing regulatory framework. According to Business Standard, the committee recommended expanding the existing compensation mechanism of the Central Electricity Regulatory Commission (CERC) to cover O&M costs of up to 5% along with compensation for auxiliary power, heat-rate and oil-consumption degradation. The committee also recommended exemption from flue gas desulphurisation units for old power plants, as they will operate to integrate green energy and stop generating during solar hours, thereby reducing daily average emissions of sulphur dioxide and other pollutants. The committee noted that required changes in the regulatory framework can be made to implement the recommendations. Additionally, the committee proposed that instead of using the thermal fleet for fine grid balancing, the same may be done from other sources, such as hydro power plants, gas power plants, pump storage plants, and battery energy storage system (BESS).
