India Needs Long-Duration Energy Storage (LDES) Targets
⚡ Quick Read
- What happened: The LDES Council has proposed a mandatory purchase obligation for Long-Duration Energy Storage (LDES) to support India’s goal of 170-260 GW of capacity by 2050.
- Why it matters: Implementing LDES-specific targets would provide the revenue certainty required for developers and EPCs to invest in large-scale, firm, and dispatchable renewable energy projects.
- Watch: Potential government adoption of LDES-specific mandates and the introduction of single-window clearance systems for storage projects.
Background and Context
As India accelerates its transition toward a decarbonized power grid, the integration of Long-Duration Energy Storage (LDES) has emerged as a critical necessity. A recent white paper published by the LDES Council highlights that India requires between 170 GW and 260 GW of LDES capacity to meet its 2050 Net Zero targets. Currently, the market lacks a dedicated policy framework similar to Renewable Purchase Obligations (RPOs), which the Council argues is essential to drive the deployment of storage technologies capable of providing grid balancing, congestion management, and resource adequacy.
Key Details
The LDES Council suggests that India should integrate LDES targets into the National Framework for Energy Storage Systems. Data from the 2H & Annual 2025 India’s Energy Storage Landscape Report by Mercom India Research indicates that India added 547 MWh of battery energy storage capacity in 2025, marking a 26% year-over-year increase from 433 MWh. However, to scale this, the Council proposes government-backed financial incentives, innovation grants for startups, and the removal of double grid fees to lower project costs. Furthermore, the report recommends increasing hourly availability requirements in round-the-clock (RTC) power purchase agreements to at least 90% to incentivize reliable, firm power delivery.
What This Means for EPCs and Developers
For EPC contractors and renewable energy developers, the proposed policy shifts represent a significant shift toward firm, dispatchable energy models. The introduction of cap-and-floor revenue mechanisms, capacity payments, and long-term energy service agreements would drastically reduce investment risk. Additionally, the proposal for a single-window clearance system addresses the persistent industry challenge of delays in permitting and grid connectivity. Developers looking to capitalize on green hydrogen and data center growth should monitor the potential for co-located LDES-electrolyzer projects, which are expected to receive targeted financial support under industrial missions.
What Happens Next
The industry now awaits a formal needs assessment from the government to determine the optimal mix of generation and storage deployment. Policymakers are being urged to adopt time-based and performance-linked pricing structures to ensure that LDES solutions are fairly rewarded for their ancillary services. As the India renewable energy sector continues to expand, the transition from short-duration battery storage to long-duration solutions will be the next major frontier for infrastructure investment, requiring close collaboration between private developers and state transmission utilities to ensure grid stability.
