India’s peak power demand is expected to touch 300 GW next year, driven by the rapid expansion of data centres, artificial intelligence and electric vehicles, Union Power Minister Manohar Lal said, underlining the need for large-scale energy storage and domestic manufacturing to secure the country’s clean energy transition.
Speaking at the 12th India Energy Storage Week 2026 at Yashobhoomi, New Delhi, the minister said India has already reached 271 GW of peak demand, while available capacity has grown to 284 GW.
“Our available capacity has grown up to 284 GW, which enables us to meet all types of demand. But with the accelerating pace of electrification, we must prepare for 300 GW peak demand next year,” he said.
50-Fold Surge
India’s installed power generation capacity has increased from 249 GW in 2014 to 445 GW now. Non-fossil fuel capacity has risen from 81 GW to 291 GW, while solar capacity has surged from 3 GW twelve years ago to 137 GW, a 50-fold increase.
“As our needs rise, energy storage becomes a national imperative, ensuring the power generated can be used whenever and wherever it’s needed,” the minister said.
He said storage would be critical to making renewable power available round the clock. “Solar, which was just 3 GW twelve years ago, is now at 137 GW. But as much as solar has grown, we must invest in storage to truly harness its potential, targeting peak hours and ensuring energy is available 24/7,” he said.
The minister also highlighted India’s experience in pumped storage projects since 1923 and said advanced storage and grid solutions would help shift and use electricity according to demand, unlike the earlier model where consumption happened instantly upon generation.
Localization Push
He pushed for self-reliance in the power sector, especially in solar cells, batteries and containers. “Nothing is greater than the country. Even if domestic products cost more initially, they belong to India. By manufacturing within our borders, we reduce imports, lower costs over time, and secure our nation against global uncertainties,” he said.
He also referred to India’s One Sun, One World, One Grid vision, including a proposed 1,600-km undersea cable to the UAE at an estimated cost of `40,000 crore, and expansion plans for links with Sri Lanka, Singapore and Europe.
Ghanshyam Prasad, chairperson, Central Electricity Authority, said India is targeting around 160 GW of storage by 2035, with clear roadmaps for both battery and pumped hydro storage.