India propels renewable energy to unprecedented heights

Decentralised grid systems enable homes, businesses, and communities to generate, store, and manage energy locally. This reduces reliance on central networks, minimises transmission losses, and enhances energy security and efficiency.

The renewable energy sector is critical to the fight against climate change and the global effort to reduce dependence on fossil fuels. As governments worldwide increasingly set ambitious targets for cleaner and more sustainable energy, integrating renewable sources such as solar and wind into existing energy grids remains one of the most significant challenges. These energy sources’ variable and intermittent nature create instability in energy grids, making seamless integration difficult. This instability accentuates the need for advancements in energy storage solutions, as the ability to store energy when production is high and distribute it when supply is low is vital to ensuring grid stability. The industry experts share their views on the evolving renewable sector. Let us go through the story to know the details of the renewable energy landscape.   

Decentralised grid systems

The concept of decentralised grid systems is gaining increasing attention as a solution to some of the challenges associated with renewable energy integration. Decentralised systems allow consumers such as homes, businesses and communities to generate, store and manage their energy locally. This reduces reliance on centralised power generation and distribution networks, minimising transmission losses and increasing energy security.

Ganesh Moorthi, Chief Technology Officer at Luminous Power Technologies, strongly advocates for the growth of decentralised grids. “Decentralised grids are essential for creating resilient and sustainable energy ecosystems,” Moorthi says. By enabling local energy production and storage, we can reduce transmission losses and ensure that communities, especially in remote or underserved areas, have reliable access to power.”

In addition to reducing transmission losses, decentralised grids have the potential to increase the resilience of the energy system by minimising the risk of large-scale outages. For example, if a centralised grid experiences a failure, it can affect millions of people. In contrast, a decentralised grid, with localised energy generation and storage, can continue to function even when a central grid is down. “Smart grid systems that integrate renewable energy sources with storage technologies can help stabilise decentralised grids, ensuring that supply and demand are balanced in real-time,” Moorthi adds. “These systems also allow for greater flexibility, enabling them to adapt to changes in energy production and consumption,” he further states.

Technological challenges

One of the key technological challenges in the renewable energy industry is the supply chain for critical raw materials. Many technologies that power renewable energy systems, such as solar panels and batteries, rely on rare earth materials like lithium, cobalt, and nickel. These materials are often concentrated in specific geographical regions, and their extraction, refining, and transport are subject to volatility. This geographical concentration leads to supply chain risk and price instability, which can affect the overall cost of renewable technologies.

According to Gautam Mohanka, CEO of Gautam Solar, these supply chain challenges are particularly pronounced in the solar panel and battery markets. “The supply chain for solar panels and batteries faces challenges due to reliance on rare earth materials like lithium and cobalt, which are geographically concentrated and often imported. This dependency results in price volatility and supply risks,” Mohanka observes. In response to these challenges, manufacturers are exploring strategies to diversify sourcing options, reduce their reliance on certain raw materials and adopt more sustainable practices. One promising avenue is recycling electronic waste (e-waste), which could reduce the need for newly extracted raw materials and lower the environmental impact of renewable energy technologies.

To mitigate the risks associated with supply chains, companies are investing in research to improve the efficiency and longevity of renewable energy technologies, particularly batteries. “We are exploring next-generation storage options such as solid-state batteries, which have the potential to offer longer life spans and higher energy densities, reducing reliance on rare materials,” Mohanka says. By investing in developing more sustainable energy technologies and supply chains, the industry can reduce its dependence on volatile raw material markets and ensure a more stable path forward for renewable energy deployment.

Role of advanced energy storage

As the integration of renewable energy sources like wind and solar into the grid continues to grow, developing advanced energy storage systems has become critical. Energy storage allows excess energy generated during periods of high renewable production to be stored for use during low generation or peak demand. Without adequate storage, fluctuations in renewable energy generation can cause grid instability, leading to power outages or inefficient energy use.

Rajesh Kaushal, Vice President of Delta Electronics India, highlights the importance of energy storage technologies in ensuring the reliability of renewable energy grids. “Energy storage solutions are critical to ensuring grid stability, especially when dealing with intermittent renewable energy sources like solar and wind,” Kaushal says. “Advanced technologies such as modular energy storage systems and power conditioning systems can enable more effective grid management by smoothing out fluctuations in energy production and consumption,” he adds.

While lithium-ion batteries are currently the most commonly used energy storage solution, they have certain limitations, including cost, capacity, and performance degradation over time. Researchers and companies are developing next-generation batteries that offer longer life spans, higher capacities, and more cost-effective manufacturing processes to address these challenges. Among the most promising options are solid-state and flow batteries, which have the potential to deliver superior performance compared to traditional lithium-ion batteries.

“Solid-state batteries, for example, offer the potential for higher energy densities and safer, more stable operation,” Kaushal explains. “These technologies could revolutionise how we store and manage renewable energy, ultimately allowing for greater grid flexibility and reliability,” Kaushal adds. Developing such advanced storage solutions is essential for supporting the growth of renewable energy and enabling more widespread adoption of decentralised energy systems.

Digitisation of energy infrastructure

Parallel with advances in energy storage, the increasing digitisation of energy infrastructure is another technological trend reshaping the renewable energy landscape. Smart grids, which rely on digital communication and automated control technologies, enable more efficient and flexible management of energy resources. These grids can monitor energy production and consumption in real time, providing data for more accurate forecasting and better demand response strategies.

However, Kaushal points out that the digitisation of energy infrastructure also introduces new challenges. “As energy infrastructure becomes more digitised and interconnected, cybersecurity risks become a significant concern,” he notes. “We must ensure that energy systems are protected from cyber threats that could disrupt operations or compromise the integrity of the grid.”

Delta Electronics India has been at the forefront of integrating AI, IoT, and predictive analytics into energy management systems. These technologies enable more precise energy usage monitoring, improving efficiency and enhancing the grid’s security. “AI-enabled predictive analytics can optimise grid performance by forecasting energy demand and supply fluctuations, allowing utilities to balance load better and ensure reliable service,” Kaushal explains.

Green hydrogen solutions

While energy storage systems like batteries are crucial for balancing renewable energy generation with demand, there is growing interest in alternative storage solutions such as green hydrogen. Green hydrogen is produced through the electrolysis of water using renewable electricity, making it a clean and sustainable alternative to traditional hydrogen production methods that rely on fossil fuels.

Naveen Munjal, Director of Business Development and Commercial at Apraava Energy, points out that green hydrogen can transform energy storage. “Green hydrogen can serve as a long-term storage solution, particularly for applications that require high energy density or long-duration storage,” Munjal explains. “However, there are still significant technological challenges to overcome in terms of storage, transportation, and electrolyser durability,” he adds.

While the development of green hydrogen technology is still in its early stages, it holds great promise for the future of energy storage. Enabling the storage of surplus renewable energy in the form of hydrogen could provide a flexible and scalable solution to the intermittency of solar and wind power.

Another promising technology in the energy storage landscape is pumped storage plants (PSP), which store excess energy in the form of gravitational potential energy. During periods of low demand, excess electricity is used to pump water to a higher elevation, where it can be stored. When demand rises, the water is released to flow back down and generate electricity. PSP is one of the most mature forms of large-scale energy storage and has been used successfully in many countries. Incorporating PSP into renewable energy systems makes it possible to create a more reliable and resilient energy grid.

Role of government and policy support

Government support plays a crucial role in accelerating the growth of renewable energy and addressing the technological challenges that hinder its widespread adoption. The Union Budget 2025 is expected to provide significant funding for renewable energy initiatives, focusing on subsidies, low-interest loans, and tax incentives for renewable energy technologies, including energy storage systems.

“Subsidies for rooftop solar systems, coupled with customs duty concessions on Battery Energy Storage Systems (BESS), will help reduce the costs associated with renewable energy projects and make them more accessible,” says Mohanka. “Government initiatives aimed at promoting domestic manufacturing of renewable energy technologies will strengthen the supply chain and ensure long-term resilience,” he further states. Moreover, Kaushal envisions increased support for developing electric vehicle (EV) infrastructure, which will play a key role in transitioning to a low-carbon economy. “Government incentives for EV adoption, including subsidies for charging infrastructure, are essential for accelerating the shift to clean transportation and reducing the carbon footprint of the mobility sector,” Kaushal opines. Munjal also advocates for policies that support the domestic manufacturing of batteries and green hydrogen production. “Expanding production-linked incentive (PLI) schemes for battery manufacturing and promoting green hydrogen development are critical to meeting India’s renewable energy goals,” he asserts.

The Indian renewable energy sector is at a crossroads with significant technological challenges to overcome to achieve a clean, sustainable energy future. By addressing issues such as the variability of renewable energy, energy storage, supply chain resilience and digitalisation of energy infrastructure, India can unlock the full potential of renewable energy and accelerate its transition to a low-carbon economy. At the upcoming ELECRAMA 2025, leading companies like Delta Electronics India and Apraava Energy will showcase cutting-edge solutions that address the technological challenges of the renewable energy sector. Through collaboration, knowledge exchange and continued investment in innovation, these efforts will help pave the way for a cleaner, greener, and more resilient energy future for India and the world.