BEHIND THE METER STORAGE OF DRE

Location: Mogra Hall A and B, 4th Floor, Convention Centre

Rising peak demand, growing variable renewable energy (RE) generation, and operational hurdles are presenting unprecedented challenges for Indian DISCOMs. Between late May and December 2025, the country was forced to curtail 2.3 TWh of solar generation due to rising solar generation and weaker-than-forecast demand. 0.9 TWh was curtailed in October alone—nearly 7% of average monthly solar generation. Under the emergency Tertiary Reserve Ancillary Service (TRAS) provisions, solar generators received ₹575-690Cr despite curtailment, resulting in economic and environmental losses to the power system. At the same time, procuring power during non-solar hours is becoming costlier due to rising peak demand, particularly in the late evenings. In May 2024, for example, extreme nighttime peaks nearing 220 GW—90th percentile of India’s all-time high of 250 GW—and poor wind conditions resulted in minimal RE generation, forcing DISCOMs to rely on gas generators that are 1.5-3x more expensive than coal. These complexities underscore the need for distributed energy storage solutions that can help DISCOMs store excess RE for use during peak demand. Ultimately, distributed energy storage can save DISCOMs power procurement costs, enhance grid flexibility and integrate more RE, and optimise distribution network operation.

India stands at a pivotal moment. Despite a recent correction, battery storage costs have plummeted in recent years, while the country’s commitment to expanding domestic manufacturing capability—projected to reach 100 GWh by the end of 2026—augurs well for its energy transition ambitions. Given the compelling opportunity emerging to deploy distributed energy storage at scale, there is a need for coordinated action on regulatory clarity, procurement frameworks, market design and revenue models, digital infrastructure, and capacity building.