India’s peak power demand is expected to reach 300 GW next year, driven by the rapid growth of data centers, artificial intelligence (AI), and electric vehicles (EVs), Union Power Minister Manohar Lal said while inaugurating the 12th India Energy Storage Week (IESW) 2026 at Yashobhoomi in New Delhi.
The minister said India’s peak power demand has already touched 271 GW, while the country’s available generation capacity has increased to 284 GW, enabling it to meet current electricity requirements.
“With the accelerating pace of electrification, we must prepare for 300 GW peak demand next year,” he said.
Highlighting India’s power sector growth, Manohar Lal said the country’s installed power generation capacity has expanded from 249 GW in 2014 to 445 GW, while solar capacity has grown from just 3 GW to 137 GW over the past 12 years.
“As our energy needs continue to rise, energy storage has become a national imperative to ensure that electricity generated from renewable sources is available whenever and wherever it is needed,” he said.
The minister said India’s energy sector has evolved from a system where electricity had to be consumed immediately after generation to one where advanced storage technologies allow power to be stored and dispatched according to demand.
He also noted India’s long history in energy storage, citing pumped storage projects that date back to 1923, and said storage technologies will play a critical role in balancing variable renewable energy generation with round-the-clock electricity demand.
Reaffirming the government’s commitment to achieving net-zero carbon emissions by 2070, Manohar Lal said India’s non-fossil fuel generation capacity has increased from 81 GW to 291 GW over the past decade.
“While solar capacity has witnessed nearly 50-fold growth, investment in energy storage is equally important to fully utilise renewable energy and ensure reliable power supply during peak demand hours,” he said.
The minister also stressed the need to strengthen domestic manufacturing under the ‘Vocal for Local’ and ‘Make in India’ initiatives, particularly for solar cells, batteries, and battery containers.
“Nothing is greater than the country. Even if domestic products cost more initially, manufacturing within India will reduce imports, lower costs over time, and strengthen the country’s energy security,” he said.
Speaking about international cooperation, Manohar Lal highlighted India’s ‘One Sun, One World, One Grid’ initiative and said the country is pursuing transnational green energy corridors, including a proposed 1,600-km undersea power transmission cable to the UAE estimated to cost around ₹40,000 crore. Similar connectivity projects with Sri Lanka, Singapore, and Europe are also being explored, he added.
The minister said the government has introduced several policy measures to accelerate renewable energy deployment, including the waiver of Inter-State Transmission System (ISTS) charges, Time-of-Day tariffs, green open access regulations, and simplified building guidelines.
Speaking at the event, Vinayak Walimbe, Managing Director of Customized Energy Solutions, said India has witnessed an 11-fold increase in installed battery energy storage system (BESS) capacity this year, alongside major manufacturing announcements.
“The scale and speed of India’s battery storage expansion demonstrate the country’s emergence as a global hub for energy storage innovation and deployment,” he said.
Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), said India is targeting nearly 160 GW of energy storage capacity by 2035 through a combination of battery storage and pumped hydro projects.
“With strong infrastructure, increasing private sector participation, and a greater focus on domestic manufacturing and standardisation, India is laying the foundation for reliable round-the-clock renewable energy,” he said.
Organised by the India Energy Storage Alliance (IESA), the three-day IESW 2026 is expected to host more than 200 exhibitors and over 10,000 industry participants. The event includes discussions on gigafactories, grid modernisation, battery technologies, recycling, supply chain resilience, and women’s leadership in the energy sector.
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