**Executive Summary:**
This document outlines the Indian government's initiatives and progress in increasing the share of renewable energy. It reports a 23.9% increase in renewable energy generation in the first half of 2025 and a 17.56% share of non-hydro renewables in the national energy mix in June 2025. The document details measures for scaling up Battery Energy Storage Systems (BESS) and upgrading grid infrastructure to achieve the 500GW non-fossil fuel capacity target by 2030.
**Key Points / Main Content:**
* **Renewable Energy Generation:**
* Renewable energy generation increased by 23.9% in the first half of 2025 (January-June) compared to the same period last year.
* The share of renewable energy, excluding hydropower, was 17.56% of the national energy mix in June 2025.
* **Battery Energy Storage Systems (BESS):**
* The Ministry of Power issued a National Framework to promote Energy Storage Systems (ESS) in August 2023.
* 100% Inter-State Transmission System (ISTS) charges waiver granted for co-located BESS projects commissioned by June 30, 2028 (order dated June 10, 2025).
* The Central Electricity Authority (CEA) recommended co-location of ESS with solar power projects in an advisory on February 18, 2025.
* Viability Gap Funding (VGF) is provided for the development of approximately 43 GWh of Battery Energy Storage Systems.
* Tamil Nadu is allocated 2.5 GWh of BESS capacity under the VGF scheme.
* A Production Linked Incentive (PLI) scheme supports giga-scale Advanced Chemistry Cell (ACC) battery manufacturing facilities of 50 GWh.
* **Energy Storage Contribution to 2030 Target:**
* Estimated contribution of energy storage infrastructure to the 500 GW non-fossil fuel target:
* BESS: 41.65 GW (208.25 GWh)
* Pumped Storage Projects (PSP): 18.98 GW (128.15 GWh)
* Total: 60.63 GW (336.4 GWh)
* Nine Battery Energy Storage System (BESS) projects with a cumulative capacity of 204.5 MW (505.6 MWh) have been commissioned till date.
* **Grid Infrastructure and Power Purchase Agreements (PPAs):**
* The Green Energy Corridor (GEC) Scheme strengthens intra-state transmission systems in 10 renewable energy-rich states to integrate renewable energy.
* Measures to expedite Power Sale Agreements (PSAs) and Power Purchase Agreements (PPAs):
* Compliance with Renewable Consumption Obligation (RCO) under the Energy Conservation Act.
* Aggregation of demand from DISCOMs/consumers before tendering.
* Regional workshops to address concerns and accelerate PSA/PPA signing.
* Amendment in Standard Bidding Guidelines for renewable energy projects to allow cancellation of Letter of Award (LoA) beyond 12 months from the LoA date.
**Impact Analysis:**
* **Renewable Energy Generators:**
* *Impact:* Benefit from increased grid stability and streamlined PPA processes, facilitating easier integration and sale of renewable energy.
* *Action Required:* Stay informed about the updated bidding guidelines and participate in the expedited PPA processes.
* **State Governments (Especially Rajasthan, Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Uttar Pradesh and Tamil Nadu):**
* *Impact:* Enhanced grid infrastructure and financial support for BESS projects to meet renewable energy targets.
* *Action Required:* Implement the Green Energy Corridor Scheme effectively and leverage the VGF scheme for BESS deployment.
* **DISCOMs and Consumers:**
* *Impact:* Increased access to renewable energy and improved grid stability.
* *Action Required:* Comply with Renewable Consumption Obligation (RCO).
* **Battery Manufacturers:**
* *Impact:* Benefit from the PLI scheme supporting giga-scale ACC battery manufacturing.
* *Action Required:* Participate in the PLI scheme and establish advanced battery manufacturing facilities.
Key Entities Referenced
Ministry of New and Renewable Energy: The Indian government ministry responsible for new and renewable energy.
Battery Energy Storage Systems BESS: Technology for storing electrical energy in batteries; crucial for grid stability and renewable energy integration.
Central Electricity Authority CEA: An organization involved in electricity generation reports and recommending colocation of ESS with solar projects.
Tamil Nadu: A state in India mentioned for its high potential in renewable energy and BESS capacity allocation.
Power Purchase Agreements PPAs: Agreements for the sale of electricity, particularly relevant to renewable energy projects.
Green Energy Corridor GEC Scheme: Scheme to strengthen Intra State Transmission Systems to integrate renewable energy into the national grid.
Rajasthan: A state in India implementing the Green Energy Corridor Scheme.
Production Linked Incentive PLI scheme: Government initiative to promote domestic manufacturing, specifically related to Advanced Chemistry Cell (ACC) Battery Storage.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2850
ANSWERED ON 06.08.2025
SHARE OF RENEWABLE ENERGY IN ENERGY MIX
2850. MS. S JOTHIMANI
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the percentage increase in renewable energy generation, excluding large hydro renewable
projects during the first half of the year 2025 and the current share of non-hydro renewables in the
national energy mix;
(b) the details of Ministry’s roadmap for scaling up Battery Energy Storage Systems (BESS) to
support grid stability and enable integration of variable renewables
(c) the projected contribution of energy storage infrastructure in achieving the national target of
500GW of non-fossil fuel-based capacity by the year 2030 especially in high potential States
like Tamil Nadu; and
(d) whether the Government is upgrading grid infrastructure and streamlining Power Purchase
Agreements (PPAs) and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) As per the Central Electricity Authority (CEA) electricity generation reports, during the first
half of the year 2025 (i.e. January – June 2025), the total renewable energy generation has increased
23.9% with reference to the same period of last year. Further, the share of renewable energy
(excluding hydro power) in the national energy mix during the month of June was 17.56%.
(b) & (c) Government has taken several measures for development and deployment of Battery
Energy Storage Systems (BESS) in the country to support grid stability and facilitate integration of
variable renewable energy as mentioned below:
• National Framework to promote Energy Storage Systems (ESS) in the country was issued by
Ministry of Power in August, 2023.
• Ministry of Power vide order dated 10.06.2025 has granted 100% Inter State Transmission
System (ISTS) charges waiver for co-located Battery Energy Storage Systems (BESS) projects,
commissioned on or before 30th June 2028.
• Central Electricity Authority issued an advisory on 18.02.2025 recommending the co-location
of ESS with solar power projects to enhance grid stability and cost efficiency.
• Ministry of Power brought out Viability Gap Funding (VGF) for development of approx. 43
GWh of Battery Energy Storage Systems. Tamil Nadu has been allocated 2.5 GWh of BESS
capacity under the state component of the VGF scheme.
• Ministry of Heavy Industry brought out a Production Linked Incentive (PLI) scheme, ‘National
Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for implementation of giga-
scale ACC manufacturing facilities of 50 GWh in India.The contribution of energy storage infrastructure in achieving the national target of 500 GW of
non-fossil fuel-based capacity by 2030 requirements as estimated by CEA are as under:
Technology Capacity
BESS 41.65 GW / 208.25 GWh
PSP 18.98 GW / 128.15 GWh
Total 60.63 GW / 336.4 GWh
Further, a total of nine Battery Energy Storage System (BESS) projects (≥ 1 MWh capacity) with
a cumulative capacity of 204.5 MW / 505.6 MWh have been commissioned till date.
(d) The Ministry has been implementing Green Energy Corridor (GEC) Scheme to strengthen Intra
State Transmission Systems to integrate renewable energy into the national grid in 10 renewable
energy rich States, namely, Rajasthan, Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Uttar Pradesh and Tamil Nadu for evacuation of renewable
energy.
Further, Government has taken various steps to expedite the Power Sale Agreements (PSAs) /
Power Purchase Agreements (PPAs), which include impressing upon States for compliance of
Renewable Consumption Obligation (RCO) under Energy Conservation Act, impressing upon
Renewable Energy Implementing Agencies (REIAs) to consider aggregating demand from
DISCOMs/ other consumers and design products accordingly before inviting tenders, organizing
regional workshops with major renewable energy-procuring States to address concerns and
accelerate PSA/PPA signing, and amendment in Standard Bidding Guidelines for solar, wind,
hybrid and FDRE (Firm & Dispatchable Renewable Energy) to provide for cancellation of Letter
of Award (LoA) beyond 12 months from the LoA date.
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