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Electric Power, Energy Transition, Renewables
January 27, 2026
HIGHLIGHTS
62 GW non-fossil energy storage needed by 2029-30
India targets 701 GW clean energy capacity by 2035
India plans to commission 100 GW of hydro pump storage projects by 2035-36 to meet the rising demand for clean energy storage, on the back of increasing non-fossil fuel capacity in the country, the federal power ministry said in a Jan. 23 release, citing a roadmap by the Central Electricity Authority (CEA).
Pumped storage uses surplus electricity to pump water uphill and generate power during peak demand hours, and as a result, it has been emerging as one of India's most cost-effective long-term storage options.
The country's non-fossil energy storage requirement is further seen at 62 GW by 2029-30, while 161 GW of storage demand is seen by 2034-35, the release further mentioned.
According to the latest information available with the CEA, the country has set a target to add 57.04 GW of hydro pump storage by 2031-32.
The CEA data also showed that India has the potential for around 269.35 GW of hydro pump storage, of which about 56.93 GW is onstream storage directly connected to a waterbody in an open-loop system.
The development came in line with the expansion of non-fossil fuel capacity. While the federal power ministry has set a target of adding 500 GW of clean energy capacity by 2030, it sees the capacity to reach at 701 GW by 2035, the federal government further said.
India might raise its target of 500 GW non-fossil fuel power capacity by 2030 if electricity demand grows at the projected 6%-7% annually and transmission upgrades come online as planned, S&P Global Energy reported Jan. 26.
India announced the target for its non-fossil fuel power capacity at the UN Conference of the Parties in 2021. Since then, renewable power capacity additions have accelerated, and large companies have made major projections for clean energy.
Currently, transmission upgrade planning has been completed till 2030, and the federal ministry for renewable energy has begun discussions with the power ministry and the Central Electricity Authority to plan transmission infrastructure expansion beyond that year.
By the end of 2025, India's renewable energy generation capacity, including hydropower projects, reached about 258 GW, accounting for 50.22% of the total capacity, while coal and lignite accounted for 226.23 GW, or around 44.04% of the total installed capacity, the CEA data further showed.
Even though India achieved 50% of its installed power capacity from non-fossil fuel sources in 2025, the country still needs around $300 billion in investments by 2030 to accelerate energy transition and attract global investors, S&P Global Energy further reported on Jan. 12.
The estimated investment could be used for renewable power generation, storage, renewable hydrogen production, strengthening grid infrastructure, and the manufacturing of renewable energy components.
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