Building Nimble Smart Grids: The Rising Role of Energy Storage and Batteries – T&D India

Report on India’s Energy Storage Transition and Alignment with Sustainable Development Goals

Introduction: A Paradigm Shift Towards Sustainable Energy

India is undergoing a significant transformation in its energy sector, shifting towards a decarbonized and resilient power grid. This report analyzes the increasing role of energy storage systems (ESS) and smart grids in this transition, with a specific focus on their contribution to achieving the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).

Advancing SDG 7: Affordable and Clean Energy

Progress in Renewable Energy Integration

India’s commitment to SDG 7 is evident in its expanding renewable energy portfolio. The nation’s energy infrastructure is being modernized to support a sustainable future, marked by significant milestones:

• As of September 2025, total installed power capacity reached 500.9 GW.
• Non-fossil fuel sources contribute 51% (256 GW) to the total capacity, directly supporting SDG Target 7.2 to increase the share of renewable energy.
• Solar and wind power collectively account for 180.4 GW, forming the backbone of this clean energy expansion.

To meet its 2030 goal of 500 GW of non-fossil fuel capacity, India is leveraging energy storage to overcome the challenge of intermittency associated with variable renewable energy (VRE), thereby ensuring a stable and reliable supply of clean energy.

The Role of Energy Storage in Grid Stability

The transition from a unidirectional grid to a dynamic, smart grid capable of managing VRE is critical. Energy storage solutions provide the necessary flexibility to balance electricity supply and demand, a foundational requirement for a modern energy system under SDG 7. Battery Energy Storage Systems (BESS) are particularly vital for providing ancillary services, reacting in milliseconds to stabilize grid frequency and voltage, thus ensuring the reliability of clean energy for all.

Fostering SDG 9: Industry, Innovation, and Infrastructure

A Diverse Spectrum of Storage Technologies

Innovation in energy storage is a cornerstone of building resilient and sustainable infrastructure as outlined in SDG 9. India is exploring and deploying a range of technologies to meet its diverse grid needs:

1. Electrochemical Batteries: Lithium-ion (Li-ion) technology is the current leader for short to medium-duration storage, with a projected national potential of 600 GWh by 2030.
2. Pumped Hydro Storage (PSP): Recognized for its reliability and durability, PSP is being prioritized for large-scale, long-duration energy storage (LDES) solutions.
3. Emerging Technologies: Research and development continue in areas such as super-capacitors, flywheels, thermal storage, and hydrogen-based systems to further enhance grid flexibility and sustainability.

Developing Domestic Manufacturing and Sustainable Industrialization

In line with SDG Target 9.4 to upgrade infrastructure and retrofit industries for sustainability, the Indian government is promoting domestic manufacturing. The Production Linked Incentive (PLI) program for Advanced Chemistry Cell (ACC) Battery Storage and the establishment of new facilities, such as the Advanced Lithium-ion Battery Plant in Sohna, Haryana, are pivotal in building a self-reliant industrial ecosystem for clean energy technologies.

Economic Growth and Policy Support for Sustainable Development

Market Projections and Investment

The energy storage sector is poised for substantial economic growth, contributing to SDG 8 (Decent Work and Economic Growth). Falling battery prices and supportive policies are attracting significant investment.

• The sector is projected to attract Rs. 4.79 lakh crore in investment by 2032.
• The Central Electricity Authority (CEA) estimates a requirement of 411.4 GWh of energy storage by 2032, comprising 175.18 GWh from PSP and 236.22 GWh from BESS.

Government Initiatives Driving Market Expansion

Progressive government policies are creating a conducive environment for the adoption of energy storage across various sectors:

• Viability Gap Funding (VGF): Supports the financial viability of independent battery storage projects.
• PM-Surya Ghar Yojana: Encourages residential solar and battery installations, promoting decentralized clean energy and contributing to SDG 11 (Sustainable Cities and Communities).
• Commercial and Industrial Applications: Businesses are increasingly using batteries for ‘peak shaving’ to optimize energy consumption and reduce costs.

Addressing Challenges through SDG 12 and SDG 13

Environmental Impact and the Need for a Circular Economy

While critical for climate action (SDG 13), the lifecycle of batteries presents challenges related to SDG 12 (Responsible Consumption and Production). Geopolitical vulnerability in mineral supply chains and the environmental impact of battery production and disposal necessitate a strategic shift.

An urgent pivot towards a circular economy is required to mitigate these risks. Establishing a domestic recycling ecosystem for batteries will not only address supply chain fears but also align with SDG Target 12.5 to substantially reduce waste generation, ensuring the clean energy transition is truly sustainable.

Outlook and Recommendations

The Path Forward for a Sustainable Energy Future

India is at a critical juncture in its energy transition. The successful integration of energy storage is fundamental to developing a clean, decarbonized, and resilient grid. To ensure long-term success and alignment with the SDGs, the following actions are recommended:

1. Diversify Supply Chains: Reduce geopolitical dependence on essential minerals for battery production through strategic sourcing and international partnerships.
2. Implement a Robust Circular Economy: Prioritize and invest in creating a comprehensive domestic recycling infrastructure for batteries to manage waste and recover valuable materials.
3. Accelerate Research and Development: Increase investment and collaboration between academia and industry to fast-track the development of next-generation, sustainable storage technologies.
4. Ensure Systemic Sustainability: Develop energy systems that are not only efficient and reliable but also safe, secure, and environmentally sustainable for future generations.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   This is the most prominent SDG addressed. The article is centered on India’s transition to clean energy, highlighting the growth of non-fossil fuel sources like solar and wind. It discusses the goal to “reach a goal of 500 GW of electricity capacity from non-fossil fuel sources by the year 2030” and the development of a “clean, decarbonised grid,” which are core to ensuring access to affordable, reliable, sustainable, and modern energy for all.

2. SDG 9: Industry, Innovation, and Infrastructure

   The article extensively covers the need to build resilient infrastructure. It details the evolution from a “traditional electrical grid” to “new smart grids” and the heavy investment in “energy storage technologies” like Battery Energy Storage Systems (BESS) and Pumped Hydro Storage (PSP). This focus on upgrading infrastructure, fostering innovation in energy storage, and promoting domestic manufacturing through the “Production Linked Incentive (PLI) program” directly aligns with SDG 9.

3. SDG 13: Climate Action

   The entire initiative described in the article is a significant climate action measure. By increasing the share of renewable energy to “51 per cent (256 GW) coming from non-fossil fuel-based sources” and aiming for 500 GW by 2030, India is actively working to decarbonize its energy sector. This shift away from fossil fuels is a primary strategy to combat climate change and its impacts.

4. SDG 12: Responsible Consumption and Production

   The article addresses the sustainability challenges associated with energy storage technologies. It points out the “damaging environmental impacts of battery production” and the need to manage “battery disposal.” The call for “creating a domestic recycling economy” and an “urgent pivot towards the circular economy” directly relates to ensuring sustainable consumption and production patterns.

5. SDG 11: Sustainable Cities and Communities

   The development of smart grids and decentralized energy solutions contributes to making human settlements more sustainable and resilient. The article mentions the expansion of the “home battery storage market,” supported by initiatives like the “PM-Surya Ghar Yojana,” which empowers communities and households with more reliable and cleaner energy, a key component of sustainable cities.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7: Affordable and Clean Energy

  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly supports this target by stating India’s achievement of “51 per cent (256 GW) coming from non-fossil fuel-based sources” and its ambitious goal of “500 GW of electricity capacity from non-fossil fuel sources by the year 2030.”
  • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article highlights that India’s energy storage sector is projected to “attract Rs.4.79 lakh crore investment by 2032” and mentions government policies like Viability Gap Funding (VGF) to drive market growth and investment in clean energy infrastructure.

• SDG 9: Industry, Innovation, and Infrastructure

  • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The article’s focus on building “new smart grids” and investing in “energy storage solutions” like BESS and PSP is aimed at creating a stable and resilient grid capable of handling variable renewable energy, which is essential for both economic activity and public welfare.
  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies. The transition to a “decarbonised grid” and the adoption of advanced technologies like HVDC, FACTS, and various energy storage systems represent a major upgrade of energy infrastructure to make it sustainable and efficient.

• SDG 13: Climate Action

  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. India’s national energy policy, as described in the article, clearly integrates climate change measures. The goal of 500 GW from non-fossil fuels is a cornerstone of its national strategy to reduce carbon emissions and combat climate change.

• SDG 12: Responsible Consumption and Production

  • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The article explicitly identifies the challenge of “battery disposal” and proposes a solution by emphasizing the need for “creating a domestic recycling economy” and moving towards a “circular economy,” which directly aligns with this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 7.2 (Increase share of renewable energy):

  Indicator: Renewable energy share in the total installed capacity.

  Evidence from the article: The article provides precise figures that can be used for this indicator. It states that as of September 2025, non-fossil fuel sources constitute “51 per cent (256 GW)” of the “total installed power capacity” of “500.9GW.” It also provides a future benchmark: the goal of “500 GW of electricity capacity from non-fossil fuel sources by the year 2030.”

• For Target 7.a (Promote investment in clean energy):

  Indicator: Investment in clean energy infrastructure and technology.

  Evidence from the article: The article provides a forward-looking financial indicator, stating that “The country’s energy storage sector is likely to attract Rs.4.79 lakh crore investment by 2032.” This figure can be used to track progress in financial commitments towards clean energy infrastructure.

• For Target 9.1 (Develop resilient infrastructure):

  Indicator: Installed capacity of energy storage systems.

  Evidence from the article: The article provides specific projections for energy storage capacity, which is a key measure of grid resilience. It cites the “CEA estimates a project requirement of 411.4 GWh (175.18 GWh from PSP and 236.22 GWh from BESS) of energy storage systems by 2032.”

• For Target 12.5 (Reduce waste generation through recycling):

  Indicator (Implied): National recycling rate for batteries.

  Evidence from the article: While the article does not provide a current recycling rate, it strongly implies the importance of this metric by calling for the creation of a “domestic recycling economy” to manage battery disposal. Progress would be measured by the establishment and growth of such an economy and the resulting increase in the recycling rate of essential minerals from batteries.

4. Table of SDGs, Targets, and Indicators

Source: tndindia.com