NewKerala.com

India Shifts to Hybrid & Storage Power Projects as Solar Prices Stay Low

India's power sector tendering is increasingly focusing on hybrid and storage-based projects to enhance grid reliability and integrate renewables, according to Nuvama Research. The report notes that solar-hour electricity prices remained low at ₹4.3 per kWh in January 2026, with supply meeting demand. Meanwhile, India's overall power demand grew by 4.8% year-on-year in January 2026, and peak demand increased by approximately 3%. The shift in project focus aims to ensure a stable power supply as the country's renewable energy capacity expands.

Key Points: India's Power Sector Tilts to Hybrid, Storage Projects

  • Solar-hour prices low at ₹4.3/kWh
  • Power demand grew 4.8% YoY in Jan 2026
  • Peak demand rose ~3% YoY to ~245GW
  • Thermal plant utilization stable at 67.7% PLF
2 min read

India tilts toward hybrid, storage power projects as solar prices remain low: Nuvama Research

Nuvama Research reports India's tendering pipeline is shifting to hybrid & storage projects for grid stability as solar power prices remain low.

"Solarhour prices stayed low at INR4.3/kWh in Jan-26. Tendering pipeline is now tilting towards hybrid and storage - Nuvama Research"

New Delhi, February 17

India's power sector tendering pipeline is now shifting towards hybrid and storage-based projects, reflecting a growing focus on improving energy reliability and supporting renewable energy integration, according to a report by Nuvama Research.

The report also noted that the country currently has an adequate solar power supply, with solar-hour electricity prices remaining low at Rs 4.3 per kWh in January 2026.

During solar hours, power supply outpaced demand, resulting in virtually no deficit, indicating sufficient availability of solar energy and stable daytime supply conditions.

It stated "Solarhour prices stayed low at INR4.3/kWh in Jan-26. Tendering pipeline is now tilting towards hybrid and storage".

While solar-hour supply remained strong, non-solar-hour supply stayed largely flat, reflecting balanced but steady power availability during non-solar periods.

Amid these developments, India's power demand increased by 4.8 per cent year-on-year (YoY) on aggregate in January 2026, despite similar lower temperatures compared with the same period last year.

The report stated, "Demand pickup drives optimism...India's power demand increased 4.8% YoY," highlighting continued strength in electricity consumption.

Peak power demand also increased during the month, rising by around 3 per cent YoY to approximately 245GW in January 2026, compared with around 237GW in January 2025. This reflects higher electricity usage and growing energy requirements across sectors.

The report further noted that thermal power plant utilisation remained stable. The all-India thermal plant load factor (PLF) stood at 67.7 per cent in January 2026, compared with 68.8 per cent in January 2025, indicating consistent use of thermal generation capacity.

Electricity trading activity also witnessed significant growth. The report stated that electricity volumes on the Indian Energy Exchange (IEX) rose by around 19.6 per cent YoY in January 2026, supported by a surge of 52.8 per cent YoY in the Real-Time Market (RTM). However, total volume growth was limited to 4.9 per cent YoY due to a 13 per cent decline in Renewable Energy Certificate (REC) volumes.

The report highlighted that the shift towards hybrid and storage-based projects is aimed at improving grid stability and ensuring a reliable power supply as renewable energy capacity increases.

- ANI

Share this article:

Reader Comments

P
Priya S
Rs 4.3 per kWh for solar is fantastic news for consumers! But the real challenge is storage. Battery technology needs to become more affordable for India. Glad to see the tendering pipeline is recognizing this need.
R
Rohit P
Demand is still growing at nearly 5% while we have surplus solar during the day. This shows our economy is powering ahead! The focus on hybrid projects will ensure industries don't face interruptions. Jai Hind!
S
Sarah B
As someone working in the energy sector, this shift is crucial. The 52.8% surge in the Real-Time Market is very telling—the grid needs flexibility. However, I hope the environmental impact of new storage projects (like large batteries) is also studied carefully.
V
Vikram M
Good analysis. But what about the states that are still heavily dependent on thermal? PLF is stable at ~68%, which means we are still burning a lot of coal. The transition to renewables must be just and not leave power sector workers behind.
K
Kavya N
Finally! We need to think beyond just installing more solar panels. The sun doesn't shine at night. Hybrid wind-solar-storage projects, especially in states like Gujarat and Tamil Nadu, can be a game-changer for grid stability. 👍

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50