India Launches Pilot to Couple Coal Plants with Battery Energy Storage Systems Amid Solar Growth.

NEW DELHI, September 8, 2025 – India has launched a pilot project to couple large-scale battery energy storage systems with existing coal-fired power plants as part of a plan to address pace of energy transition, renewable energy development and energy stability. This follows unprecedented growth in solar capacity in India and a new set of challenges in managing grid reliability.

India is rapidly evolving its energy sector. The country achieved rooftop solar capacity of more than 16.5 gigawatts (GW) by the second quarter of 2025, following the addition of 2.8 GW in the first half of the year (+158% from first half 2024). India’s total solar capacity has surpassed 100GW and it has now become the world’s fourth-largest solar market.

However, this solar surge has intensified grid management challenges. Renewable intermittency led to a 17% curtailment rate for wind and solar power in 2023, rising to a 12% power deficit during the peak summer of 2024. Despite ambitious renewable targets, coal remains the backbone of India’s electricity supply, accounting for approximately 70% of generation.

The new pilot project aims to leverage the existing infrastructure of coal plants, repurposing them as grid stability hubs coupled with battery storage. This approach seeks to:

1.Enhance Grid Reliability: Provide immediate power injection during peak demand or sudden drops in solar output.

2.Reduce Renewable Curtailment: Store excess solar energy generated during peak sunlight hours for later use.

3.Optimize Coal Asset Utilization: Improve the operational efficiency of coal plants in a changing energy mix.

This effort is in line with a broader dual-track energy response plan. India is rapidly increasing renewables (and has a goal of 500 GW of non-fossil capacity by 2030) but it is also increasing its coal fleet, with 12.8 GW of new coal proposals made during just the first half of 2025. This dual track represents the difficulty in meeting rising energy demand with assured stability in the grid.

Checking the battery storage aspect will be essential. India currently has ~505.6 MWh of operational Battery Energy Storage Systems (BESS) across 9 projects as of confidential reports, but the government has recognized the need for a tremendous ramp. By 2030, India will need support for up to 14GW/28GWh of further storage capacity.

The use of a pilot also demonstrates the challenges for this project and India’s overall storage digestion priorities by leveraging imports. The key materials in BESS (the cell itself and battery management systems) are largely reliant on foreign imports. This pilot could be a vehicle for development of domestic skills and manufacturing capabilities, which the government is seeking to promote through sources of policy frameworks and possible incentives.

The pilot illustrates a worldwide pattern where nations with high renewable penetration explore hybrid solutions – India has the scale of energy system and reliance on coal that presents its own unique case study, and if this is proven successful it may provide the roadmap for other developing economies trying to navigate the energy transition.

About India’s Energy Sector
India is among the fastest growing major economies in the world with electricity demand increasing at over 7% on an annual basis. The complexity of ensuring reliable and affordable power for its 1.4 billion people, while simultaneously aiming towards its climate aspirations, including net-zero by 2070, is the unique challenge facing India.