India plans mandatory storage on new solar from 2027

India's CEA has proposed that solar and wind plants commissioned from 1 July 2027 carry co-located storage of at least 10% of capacity for two hours.
India has proposed making battery storage mandatory on new solar and wind plants. The Central Electricity Authority issued a draft notification on 3 September 2026 requiring ground-mounted solar and onshore wind projects commissioned from 1 July 2027 to carry co-located storage of at least 10% of installed capacity with a two-hour minimum duration, plus grid-forming control on at least 15% of inverters.
Key parameters of the CEA draft
| Параметр | Значение | Источник |
| Instrument | Draft 2nd Amendment to CEA Technical Standards for Construction of Electric Plants and Electric Lines Regulations, 2026 | CEA |
| Date notified | 3 September 2026, under Section 177 of the Electricity Act, 2003 | CEA |
| Applies from | Projects commissioned on or after 1 July 2027 | CEA |
| Grid-forming requirement | At least 15% of a plant's inverters | CEA |
| Grid-forming on storage | All BESS power conversion systems | CEA |
| Co-located storage, phase one | 10% of installed capacity, 2-hour minimum duration | CEA |
| Worked example, phase one | 100 MW plant needs 10 MW / 20 MWh | CEA, via PV Tech |
| Co-located storage, phase two | 4-hour duration for projects commissioned 1 Jul 2029 to 30 Jun 2031, capacity share unchanged at 10% | CEA |
| Worked example, phase two | 100 MW plant needs 10 MW / 40 MWh | CEA, via PV Tech |
| Consultation deadline | 4 October 2026 | CEA |
| Indian renewable capacity, 30 June 2026 | 288 GW, including 162 GW solar and 57 GW wind | JMK Research Q2 2026 India RE Update |
| Pipeline at that date | 149 GW of solar, wind, hybrid and storage | JMK Research |
Why a regulator mandates storage rather than pricing it
India has 162 GW of solar on a system that was not designed for it, and 149 GW more in the pipeline. Two problems follow. The first is transmission: evacuating midday output from renewable-rich states has become a binding constraint. The second is stability: as thermal plant is displaced, the rotating mass that used to hold frequency steady disappears with it, and nothing automatically replaces it.
A capacity market or a scarcity price would in theory make developers solve both voluntarily. A construction standard does it by fiat, which is faster and blunter. The cost lands on the developer and, through tariffs, on the offtaker. The draft explicitly reserves the CEA's right to change the percentages later, which reads as an acknowledgement that 10% and two hours are an opening position rather than an engineering conclusion.
Procurement has been moving this way already, ahead of the rule. In June 2026 the Solar Energy Corporation of India tendered 1,200 MW of firm and dispatchable renewable capacity backed by 4,800 MWh of co-located storage, and in August it awarded a 1 GW round-the-clock tender at tariffs of INR 5.25-5.26 per kWh. The draft standard formalises a direction the market had already chosen.
What grid-forming control actually changes
A grid-following inverter measures the grid's voltage and frequency and injects current in step with it. Remove enough synchronous generation and there is nothing left to follow. A grid-forming inverter instead behaves as a voltage source, setting frequency and phase itself, so it can ride through disturbances and support black start. The hardware difference is modest; the control software, the testing regime and the compliance certification are not, and that is where the cost sits.
Requiring grid-forming control on every battery power conversion system is the more consequential half of the draft. It effectively rules out a class of cheaper PCS units from the Indian market from mid-2027, and manufacturers building for India will not maintain two product lines for long.
The SOLTECH view
This is Indian regulation and it has no direct force in the UAE. It matters here because India is the second-largest solar market on earth, and what India mandates, the supply chain builds.
- For a villa or building owner in the UAE: no effect on your system, your DEWA tariff or your approval process. Rooftop solar under Shams Dubai is not affected by anything in this draft. The second-order effect, if it appears at all, is on hybrid inverter pricing two to three years out, as manufacturers absorb grid-forming compliance costs across their whole range rather than one product line. That is a plausible mechanism, not a forecast, and we would not put a number on it.
- For an EPC contractor: watch the storage-to-solar ratio being normalised here. Ten per cent of capacity for two hours is a modest, deliberately cheap starting point - and it doubles to four hours from 2029. Gulf procurement is heading to far higher ratios: DEWA phase seven pairs 2,000 MW of solar with 8,400 MWh. A contractor who can quote, install and commission a BESS alongside PV is qualifying for a market that pure-PV contractors are being written out of. See how we select inverters.
- For an investor: the honest read is that mandated storage raises capital cost per megawatt of solar and lowers curtailment risk, and the net effect on returns depends entirely on how the offtaker pays for it. India's tariff outcomes will be the test case: the 1 GW round-the-clock award at INR 5.25-5.26 per kWh is the number to track against unbundled solar tariffs over the next year. Do not assume the mandate is value-destructive without watching that spread. See how we frame project economics.
What we would not claim: that the UAE will copy this. Abu Dhabi and Dubai are already procuring storage voluntarily and at ratios far above 10%, because the driver here is an afternoon and evening air-conditioning peak rather than a midday transmission bottleneck. India is retrofitting a rule onto a fleet built without storage. The GCC has the luxury of specifying it up front, and that is a better position to be in.
Источники: Central Electricity Authority - draft Technical Standards amendment regulations, 2026, CEA - What's new, consultation notice, PV Tech - India's CEA proposes mandatory storage for new solar, wind projects from 2027, 4 September 2026.
