India Faces Electricity Shortages Amid Renewable Energy Push

India’s electricity grid is under increasing pressure due to the rapid expansion of renewable energy sources without adequate energy storage systems. As the country aims to enhance its renewable capacity, the absence of reliable baseload support is resulting in projected power shortages, particularly during peak demand months.

Current Energy Landscape

India has seen increase in renewable energy capacity. As of early 2025, the total renewable capacity reached over 165 gigawatts (GW). This includes more than 21 GW added in the previous fiscal year alone. However, the reliance on solar and wind energy, which depend on weather conditions, leaves gaps in supply during high-demand periods, especially in the evenings.

Challenges of Renewable Energy

Renewable sources like solar and wind are intermittent. Solar power generation peaks during the day but declines in the evening when demand surges. Coal-based thermal power, which can be ramped up quickly, has not expanded , increasing the risk of shortages. The peak power demand has risen sharply, from 169 GW in 2018-19 to a projected 270 GW in 2025.

Grid Stability Concerns

The stability of the electricity grid is threatened by rapid demand-supply imbalances. Recently, an unexpected cloud cover caused drop in solar generation, impacting grid frequency. This instability could lead to forced load shedding if not managed properly. The National Load Despatch Centre anticipates that unmet electricity demand could reach 15-20 GW during high-risk months like May and June.

Need for Energy Storage Systems

To address these challenges, energy storage systems are essential. The Central Electricity Authority has recommended co-locating energy storage with solar projects. Energy storage systems, such as battery energy storage systems (BESS) and pumped storage plants (PSP), can store excess energy produced during the day and release it when demand rises.

Future Projections and Recommendations

Despite the urgent need for energy storage, India’s current installed capacity remains low, at under 5 GW. Projections suggest that by 2030, India will need approximately 208.25 GWh of storage capacity. The National Load Despatch Centre has proposed increasing the operation of imported coal-based plants to meet peak demand, denoting the need for a balanced approach to energy generation.

Policy Missteps and Corrective Measures

Past policy decisions have limited the expansion of thermal power, focusing primarily on renewable sources. This has led to a lack of flexibility in the energy supply. Recent measures include a renewed emphasis on nuclear energy and the addition of thermal capacities. Additionally, the Central Electricity Authority’s directive to mandate energy storage for new solar projects aims to mitigate reliability risks.

Challenges Ahead

The transition to renewable energy must be managed carefully. Without adequate storage and a balanced energy mix, India risks facing severe electricity shortages. The integration of renewable sources needs to consider the realities of energy demand and supply dynamics.

Questions for UPSC:

1. Examine the impact of renewable energy expansion on India’s electricity grid stability.
2. Discuss the role of energy storage systems in mitigating power shortages in India.
3. Critically discuss the policy shifts in India’s energy sector over the last decade.
4. Analyse the challenges posed by intermittent renewable energy sources on peak power demand management.

Answer Hints:

1. Examine the impact of renewable energy expansion on India’s electricity grid stability.

1. Rapid expansion of renewables has increased grid instability due to reliance on intermittent sources like solar and wind.
2. Power shortages are expected during peak demand months, particularly in May and June, exacerbating grid pressure.
3. Coal-based thermal capacity has not kept pace, limiting the ability to provide baseload support during non-solar hours.
4. Recent events, like unexpected cloud cover, have led to drops in solar output, affecting grid frequency.
5. The National Load Despatch Centre warns of potential unmet demand of 15-20 GW during high-risk months.

2. Discuss the role of energy storage systems in mitigating power shortages in India.

1. Energy storage systems, like Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSP), can store excess solar power for later use.
2. Co-locating energy storage with solar projects is recommended to enhance grid stability and meet peak demand efficiently.
3. Current energy storage capacity is low, at under 5 GW, while projections indicate a need for 208.25 GWh by 2030.
4. Timely deployment of storage systems is crucial to prevent exacerbation of energy shortages during high-demand periods.
5. Lower costs of BESS have made them viable, yet capacity addition has been slow, necessitating urgent policy action.

3. Critically discuss the policy shifts in India’s energy sector over the last decade.

1. Past policies focused heavily on scaling up renewables while limiting thermal capacity expansion, leading to supply vulnerabilities.
2. The National Electricity Plan (2017-22) discouraged new thermal projects, prioritizing renewable energy sources.
3. Recent corrective measures include a renewed focus on nuclear energy and re-evaluating thermal capacity additions.
4. Imported coal-based plants are being considered for higher capacity utilization to address peak demand challenges.
5. Policy missteps have resulted in a lack of flexibility in energy supply, necessitating a balanced approach moving forward.

4. Analyse the challenges posed by intermittent renewable energy sources on peak power demand management.

1. Intermittent nature of solar and wind energy leads to supply gaps during peak evening demand when solar generation drops.
2. Coal-based thermal power, which can quickly ramp up, has not grown sufficiently to fill these gaps, increasing risk of shortages.
3. Peak power demand has surged , from 169 GW in 2018-19 to a projected 270 GW in 2025, stressing the grid.
4. Grid stability is threatened by rapid demand-supply imbalances, necessitating effective management strategies to prevent outages.
5. Without adequate energy storage and a diversified energy mix, managing peak demand effectively remains a critical challenge.