India’s Power Sector Embraces Hybrid and Storage to Boost Reliability

India's power sector is witnessing a strategic shift towards hybrid and storage-based projects to bolster energy reliability and better integrate renewable sources. This trend is outlined in a recent report by Nuvama Research, which further reveals that the country's solar power supply is currently sufficient, keeping solar-hour electricity prices low at Rs 4.3 per kWh as of January 2026.

Supply during solar hours exceeded demand, effectively eliminating deficits and ensuring stable daytime conditions. Solar-hour prices remained economical at INR 4.3/kWh in January 2026, while the focus of current tenders tilts towards these hybrid and storage solutions. Non-solar-hour supply maintained a steady balance, despite a 4.8% year-on-year increase in overall power demand during January 2026, even with comparable lower temperatures to the previous year.

The report cites a 3% year-on-year increase in peak power demand, reaching approximately 245GW, up from around 237GW in January 2025. Thermal power plant utilization remained consistent, though slightly reduced, with an all-India thermal plant load factor at 67.7% compared to 68.8% the previous year. Electricity trading also flourished, fueled by a 52.8% year-on-year rise in Real-Time Market activity, despite the restraining effect of a 13% decrease in Renewable Energy Certificate volumes. This indicates a commitment to grid stability and dependable power supply amid growing renewable capacity. (ANI)