New Delhi: India’s power sector has reached a critical inflexion point where energy storage, grid flexibility and decisive policy execution will determine its ability to sustain economic growth while meeting climate commitments, senior government officials and industry leaders said on Monday at a conference organised by Federation of Indian Chambers of Commerce and Industry (FICCI).
The Indian Power & Energy Storage Conference 2025 brought together policymakers, regulators and industry executives to chart a roadmap for a sector navigating the complexities of renewable integration while managing thermal assets. The conference was supported by the Ministry of Power, the Ministry of New and Renewable Energy (MNRE) and the Central Electricity Authority (CEA).
With over 500 GW of installed capacity, positioning India as the world’s third-largest electricity producer, speakers said the focus is shifting from capacity addition to system sustainability. While renewables account for more than 50 percent of installed capacity, thermal power continues to supply nearly 70 percent of actual electricity generation.
“India’s energy transition is not only about climate action, but also about achieving energy independence and supporting rapid economic growth towards 2047,” said Srikant Nagulapalli, Additional Secretary at the Ministry of Power. He outlined proposals in the forthcoming Electricity (Amendment) Bill to improve distribution efficiency, enhance market development and optimise infrastructure utilisation, identifying data analytics, artificial intelligence-enabled grid management and performance-linked incentives as critical enablers.
The distribution sector emerged as a key area of concern, with speakers underscoring technology adoption as essential for operational efficiency and financial turnaround. “Smart metering and smart grids are driving a visible turnaround in the distribution sector by improving billing efficiency, revenue realisation and consumer empowerment,” said Atul Bali, Director, National Smart Grid Mission.
From a system planning perspective, the conference highlighted the need to balance renewable expansion with thermal plant viability. “Flexible operation of thermal power plants is becoming essential with rising renewable penetration, but it must be implemented in a manner that safeguards plant health and long-term viability,” said Praveen Gupta, Member (Thermal) at the Central Electricity Authority (CEA), stressing the importance of coordinated planning across generation, transmission and storage.
Industry representatives echoed concerns over the technical and financial stress on existing assets. “Thermal power continues to be the backbone of India’s electricity system, but increasing flexibility requirements are placing significant technical stress on assets,” said Dinesh Batra, Co-Chair of FICCI’s Power Committee and Executive Vice President at Hindustan Power Projects, calling for policy and market designs that protect existing capacities while enabling smoother renewable integration.
Analysts at the conference said policy clarity, technology adoption and financial sustainability must advance in parallel. “India’s power sector is at an inflection point, driven by policy reforms, market evolution and technological advancements,” said Ashish Mittal, Director of Energy & Commodities at CRISIL. “Digitisation, real-time markets, renovation of existing assets and flexible operations will be crucial in meeting India’s rapidly evolving demand-supply dynamics.”
Energy storage drew particular attention as a critical enabler of grid stability. “Energy storage is the missing link in addressing peak demand challenges and maximising renewable utilisation,” said Anil Kumar Pandey, Advisor at Jindal Power Limited, calling for policy incentives and rationalised transmission charges to accelerate deployment.
The conference concluded with a broad consensus on the need for closer policy–industry collaboration, storage-led flexibility, market-based reforms and technology-driven transformation to build a resilient power ecosystem aligned with India’s Viksit Bharat @2047 vision.
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