Hybrid solar-storage gains ground in India’s power auctions

Utility tenders are increasingly bundling generation with battery storage.

India is expected to accelerate the deployment of hybrid renewable energy projects combining solar photovoltaic (PV) and battery storage, with the period from 2027 to 2030 likely to drive significant growth in project development and investment, according to GlobalData.

The report said utility tenders increasingly include battery storage alongside solar generation to improve power reliability and better match electricity supply with demand.

"Hybrid power is no longer experimental in India—it's becoming mainstream," said Attaurrahman Ojindaram Saibasan, power analyst at GlobalData. He said solar-plus-storage projects reduce revenue risk, improve grid flexibility, and help minimize renewable energy curtailment.

“To sustain this momentum, auction design, grid readiness, and regulatory certainty must improve,” he noted.

In January 2026, Solar Energy Corporation of India awarded a 1.2-GW solar project paired with 3.6 GWh of battery storage under long-term power purchase agreements, one of the country's largest hybrid renewable energy procurements.

Saibasan said developers continue to monitor auction rules, storage compensation, grid interconnection requirements, and battery performance guarantees, as these factors will influence project economics and investment returns.

GlobalData projects India's electricity demand to increase from about 1,418 TWh in 2025 to nearly 1,945 TWh by 2030, driven by industrial growth, rising cooling demand, and increased electric vehicle adoption.

The report noted that hybrid projects will help address the gap between variable renewable generation and peak electricity demand, particularly in regions with transmission constraints.

“For hybrid developers, utilities, and financiers, this is a moment to scale. Hybrid auctions offer a path to combine clean generation, stability, and revenue consistency,” Saibasan said. “But success depends on whether India can iron out grid, regulatory, and quality-of-execution seams quickly.”