At Power Event, Govt, Industry On Same Page For Storage, Grid Stability And Managing Thermal Assets

India's power sector has reached a critical inflexion point where energy storage, grid flexibility and decisive policy execution will determine the country's ability to sustain economic growth while meeting climate commitments, senior government officials and industry leaders said at a major conference in New Delhi. The focus on storage, even while maintaining the need to 'look after' thermal assets underlined the unique challenges India faces as it seeks to add more renewables to the grid. Over 50% of India's thermal capacity lies in the private sector, a number that crosses 70% when it comes to the renewables capacity outside of large Hydro power.

The Indian Power & Energy Storage Conference 2025, organised by industry lobby group and trade body FICCI, brought together policymakers, regulators and industry executives to chart a roadmap for a sector grappling with the complexities of renewable integration amidst managing thermal assets. The conference was supported by the Ministry of Power, Ministry of New & Renewable Energy and Central Electricity Authority. FICCI's involvement underscored the decisive shift underway in India's C&I sector to add more green energy to their consumption mix as well.   

With over 500 GW of installed capacity, positioning India as the world's third-largest electricity producer, the focus is gradually shifting towards system sustainability. While renewables now comprise more than 50 per cent of installed capacity, thermal power continues to supply nearly 70 per cent of actual electricity.

"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, Government of India. He outlined proposals in the forthcoming Electricity (Amendment) Bill to improve distribution efficiency, enhance market development, and optimise infrastructure utilisation. He identified data analytics, artificial intelligence-enabled grid management and performance-linked incentives as critical enablers for a stable, future-ready power system.

 The distribution sector emerged as a focal point of discussions, with officials highlighting technology as the key for more operational efficiency and better financial performance. "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, National Smart Grid Mission. 

 From a system planning perspective, the conference underscored the importance of thermal plant viability, amidst the renewable expansion . "Flexible operation of thermal power plants is becoming essential with rising renewable penetration, but it must be implemented in a manner that safeguards plant health and long-term viability," said Praveen Gupta, Member (Thermal) at the Central Electricity Authority, stressing the need for balanced planning across generation, transmission and storage infrastructure.

 Industry representatives raised concerns about the technical and financial pressures facing existing generation assets. "Thermal power continues to be the backbone of India's electricity system, but increasing flexibility requirements are placing significant technical stress on assets," said Dinesh Batra, Co-Chair of FICCI's Power Committee and Executive Vice President at Hindustan Power Projects. He called for policy and market designs that protect existing thermal capacities whilst enabling smoother renewable integration.

 Analysts emphasised that policy clarity, technology adoption and financial sustainability must progress simultaneously. "India's power sector is at an inflection point, driven by policy reforms, market evolution and technological advancements," said Ashish Mittal, Director of Energy & Commodities at CRISIL. "Digitisation, real-time markets, renovation of existing assets and flexible operations will be crucial in meeting India's rapidly evolving demand-supply dynamics."

 Energy storage received particular attention as the critical missing component for grid stability. "Energy storage is the missing link in addressing peak demand challenges and maximising renewable utilisation," said Anil Kumar Pandey, Advisor at Jindal Power Limited, calling for policy incentives and rationalised transmission charges to accelerate deployment.

 The conference concluded with consensus on the necessity of policy–industry collaboration, storage-led flexibility, market-based reforms and technology-driven transformation to build a resilient power ecosystem aligned with India's Viksit Bharat @2047 vision.