Scheme and tech for RE growth

Energy storage plays a pivotal role in maintaining grid stability. It stores excess renewable energy for use during peak demand.

The Indian renewable energy sector is witnessing remarkable growth, driven by government policies, technological advancements, and increasing demand for clean energy. As the country aims to achieve its ambitious target of 500 GW of non-fossil fuel energy capacity by 2030, the need for advanced electrical equipment and grid modernisation has become paramount.

The government’s Production-Linked Incentive (PLI) scheme has significantly boosted domestic manufacturing of critical components like solar PV modules, batteries, and power electronics. This initiative reduces import dependency and strengthens India’s energy infrastructure. Additionally, digital technologies, including the Internet of Things (IoT) and AI-powered predictive maintenance systems, enhance grid reliability and operational efficiency. Companies like Tata Power, in collaboration with AWS, are leading the charge by leveraging cloud-based data analytics for real-time monitoring and grid management.

Energy storage also plays a pivotal role in maintaining grid stability by storing excess renewable energy during peak demand. With the National Energy Storage Mission (NESM) promoting large-scale battery deployment, India is making strides in building a resilient energy ecosystem. As investments grow and domestic production expands, the country is well-positioned to meet its clean energy goals, driving economic growth and environmental sustainability.

EPR explores the trends and current happenings in the industry in an interaction with the industry leaders.

Increasing adoption of renewable energy sources

The growing adoption of renewable energy drives significant demand for advanced electrical equipment, reshaping India’s energy landscape.

“Renewable energy’s rise fuels demand for advanced electrical equipment. Grid modernisation necessitates smart grids, sensors, and energy storage,” says Subodh Pandey from Gloster. He emphasises the importance of advanced inverters for DC-AC conversion, grid integration, and stable connections through power electronics. Energy storage solutions like advanced batteries are crucial in balancing supply and demand.

Piyush Garg from Balaji attributes the surge in demand for smart electrical equipment to government initiatives supporting renewable energy generation. “Since 2010, the Indian Government has focused intensely on Renewable Energy Generation, gaining momentum after 2014. Incentive schemes and the growing demand for smart, energy-efficient infrastructure are key drivers,” he notes. Garg highlights the critical need for smarter products such as energy meters, switching devices, and circuit breakers for real-time tracking and data monitoring. Furthermore, utilities increasingly adopt digital substations, AI-driven power management, and IoT-enabled monitoring systems to enhance grid resilience.

Moreover, Akilur Rahman from Hitachi emphasises the necessity of robust technologies for seamless renewable integration. “The transition to clean energy requires a resilient, flexible, intelligent power grid. Flexible AC Transmission Systems (FACTS), High Voltage Direct Current (HVDC) transmission, digital substations, and automation solutions are essential for transmitting and integrating renewable energy,” he states. Rahman underlines Hitachi Energy’s commitment to providing innovative solutions to strengthen grid resilience, maximise efficiency, and support energy transition in India.

Push for grid modernisation.

The country’s push for grid modernisation and renewable energy expansion heavily relies on advanced digital technologies. Subodh Pandey states, “IoT (Internet of Things) enables real-time monitoring of grid components, providing data for efficient management and fault detection.” AI further enhances grid stability by optimising energy distribution, predicting demand, and analysing vast datasets. Predictive maintenance powered by AI and IoT minimises downtime and ensures a reliable energy supply. These technologies are crucial for integrating distributed renewable sources, reducing transmission losses, and enhancing grid efficiency.

Piyush Garg highlights Tata Power’s collaboration with Amazon Web Services (AWS) to advance its digital infrastructure. “With AI-powered data from AWS, Tata Power collects real-time data for predictive maintenance, grid optimisation, and demand forecasting,” he explains. This partnership supports faster outage detection, improved grid stability, and personalised energy recommendations. Garg emphasises, “Such innovative tools set new standards for power companies, driving a smarter and more sustainable energy future for India.” As the country strives to achieve 500 GW of renewable energy capacity by 2030, the role of AI, cloud computing, and IoT will be paramount.

Akilur Rahman underscores the importance of digitalisation in India’s evolving power infrastructure. “Digital technologies such as AI-driven analytics and predictive-prescriptive maintenance reduce unplanned outages and optimise asset performance,” he notes. IoT-connected devices provide real-time insights, aiding utilities in making informed decisions. Rahman also highlights Hitachi Energy’s role in supporting utilities with advanced automation and intelligent grid solutions. “Our digital solutions empower industries to build a resilient, sustainable grid responsive to changing energy demands,” he adds.

Reducing dependency on imports

The government’s Production-Linked Incentive (PLI) scheme significantly reduces the country’s import dependency by boosting domestic manufacturing. Subodh Pandey highlights that the scheme drives growth in electrical equipment production, particularly in renewable energy sectors like solar PV. “The PLI scheme promotes technological advancement, enhancing the competitiveness of Indian-made equipment,” he says. The government fosters a robust domestic supply chain by focusing on producing critical components such as semiconductors and advanced batteries locally.

Piyush Garg adds that the initiative has led to notable economic progress. “As of August 2024, investments of ₹1.46 lakh crore have resulted in incremental production of over ₹12.50 lakh crore, creating more than 9.5 lakh jobs. Exports have surpassed ₹4 lakh crore, significantly reducing dependency on imports,” he explains. Policies like import duty hikes, subsidies for component manufacturing, and the ‘Atmanirbhar Bharat’ initiative further encourage self-reliance among Indian manufacturers. 

However, Akilur Rahman points out that while the PLI scheme benefits sectors like electronics, pharmaceuticals, and food processing, the power transmission sector has yet to receive dedicated support. “Investments in localised manufacturing of critical transmission components, including power electronics modules, are increasing through OEM expansions,” he notes. The government’s recent Union Budget for FY 2025 emphasises a “Manufacturing Mission – Furthering Make in India,” focusing on clean-tech manufacturing and high-voltage transmission equipment.

Challenges on the way

The goal of integrating 500 GW of non-fossil fuel energy by 2030 presents significant challenges for the electrical equipment sector. Subodh Pandey highlights, “Manufacturing scale, stable supply chains, and technological innovation are crucial for meeting this target. Expanding domestic production of renewables equipment and ensuring access to critical raw materials are top priorities.” Grid integration remains a concern, with the need for advanced energy storage systems and inverter technologies to manage variable renewable generation.

Piyush Garg emphasises the business opportunity but cautions against the existing dependency on imported power electronics and transformers. “The PLI scheme is a step forward, but further scaling India’s manufacturing capacity is necessary. Advanced switchgear, smart transformers, and digital substations will be essential for managing fluctuations and maintaining grid resilience,” he says. Adopting digital technologies like IoT and AI is vital for predictive maintenance and operational efficiency. However, Garg notes, “Cybersecurity threats and data management complexities remain challenges requiring immediate attention.”

The need for a skilled workforce is another critical issue. “Equipped personnel are essential to operate sophisticated systems. Training and upskilling programmes will ensure the youth are prepared to meet industry demands,” Garg adds. Similarly, integrating large-scale battery storage and pumped hydro is necessary for grid balancing, though high costs and limited domestic production pose obstacles.

Akilur Rahman underscores the importance of strengthening transmission and distribution networks. “Grid congestion, land acquisition for new corridors, and improving equipment visibility are major concerns,” he explains. “Solutions like HVDC transmission, digital substations, and demand-response systems are pivotal for grid stability.” Companies like Hitachi Energy are leading efforts to develop resilient and flexible grid technologies, ensuring India’s renewable ambitions are achieved while maintaining a reliable electricity supply.

Energy storage projects and grid-scale battery deployments

The energy sector in India is rapidly evolving with a surge in energy storage projects and grid-scale battery deployments aimed at enhancing energy management and grid stability. Large-scale lithium-ion, sodium-ion, and flow batteries are being deployed to store excess renewable energy and supply it during peak demand. Solar-wind hybrid projects with integrated storage are crucial in managing intermittency and ensuring a stable power supply.

“The rise in energy storage projects and AI and IoT-enabled smart grids is optimising battery dispatch, reducing transmission losses, and enabling real-time demand response,” says Piyush Garg. Additionally, government initiatives like the National Energy Storage Mission (NESM) and Production-Linked Incentive (PLI) schemes encourage domestic battery manufacturing and reduce reliance on imports.

Grid-scale storage remains essential for stabilising renewable energy supply and mitigating outages. “As India expands its renewable capacity, the need for efficient storage solutions is growing,” says Akilur Rahman. With major investments from companies like reliance, domestic production is set to grow significantly, addressing future energy demands.

The acquisition of eks Energy by Hitachi Energy further bolsters the country’s storage capabilities with advanced power electronics solutions, enhancing grid stability and accelerating the clean energy transition. Recycling initiatives for used batteries also gain momentum, minimising environmental impact and reducing reliance on imported raw materials.

Industry experts emphasise that leveraging digital technologies is essential for modernising the power sector in India, ensuring grid stability, enhancing efficiency and driving its clean energy transition. The transformative role of renewable energy underscores the need for a modern, responsive grid infrastructure. As India scales up its energy storage capacity, cost reductions, technological advancements, and robust regulatory support will be key drivers. These coordinated efforts will enhance grid resilience and facilitate the achievement of the country’s ambitious renewable energy targets by 2030, positioning India as a global leader in clean energy and sustainable economic growth.