Solar energy, cheap battery storage can meet 90% of India’s power demand at affordable costs: Ember report

BAttery storage is at present chinchy sufficiency in republic of india that solar force can meet 90% of the country’s power demand at lower lifetime costs than current average purchase rates in most states, a new study has found, a finding that could potentially point to a future buffer against global energy shocks.Essentially, solar power can affordably supply India with power day and night for most months, especially in states with high solar irradiance (a measure of solar intensity).Modelling by energy think tank Ember showed that India could have met 90% of its electricity requirements in 2024 with solar and battery power at a levelised cost of electricity (LCOE) – a metric to evaluate the average cost of power generation for an energy asset’s lifetime – of ₹5.06/kWh, assuming there are no grid constraints.HT reported on April 2 that the government is taking several measures to reduce LPG import dependence and enhance energy security in the medium to long term. These include prioritising piped natural gas and renewable energy development, including solar, wind, bioenergy and green hydrogen.This would have optimally required 930 gigawatts (GW) of solar capacity and 2,560 gigwatt-hours (GWh) of battery storage. Ember selected 2024, given that it was a particularly hot year with extreme heatwaves, driving up electricity demand. India’s peak power demand hit a record high of approximately 250 GW in May 2024.The primary supply challenge, the authors said, would be extended periods of low solar output, especially during the monsoon, and not a lack of battery capacity.“Solar and batteries are already delivering power below the prevailing power purchase costs in many states, while rivalling coal in terms of reliability. From here, the economics only becomes more compelling,” said Duttatreya Das, Asia energy analyst at Ember.“The dramatic improvement in battery economics over the past two years has delivered the missing piece that turns sunshine into reliable electricity day and night,” said Kostantsa Rangelova, global electricity analyst at Ember.“The question is no longer whether solar can power India’s electricity system, but how quickly it can scale,” she said in a statement.Ember’s modeling showed that of the 10 largest states, seven – Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Telangana, Gujarat and Uttar Pradesh – could procure at least 83% of their electricity from solar plus batteries at a lower LCOE than the current APPC.The government expects the country’s peak power demand to reach a record 270 GW this year, even as a global energy crisis is unfolding. The US-Israel war against Iran has disrupted global gas supplies. While gas-based power was only 6.2% of India’s electricity mix in the fiscal year 2024-25, the government has relied on it for meeting peak demand during short periods in the summer months. This year India will rely on coal, including imports, even as key benchmark prices of the fossil fuel are on the rise, Ember said. The improving economics of solar plus batteries offer a natural buffer against such energy shocks in the future, it added.