In the high-stakes theater of India’s energy revolution, the narrative is shifting from the mere vanity of “installed capacity” to the gritty, complex reality of “system-level optimization.” In an engaging and insight-rich exchange, Shweta Kumari, Sub-Editor at The Battery Magazine, steps into a compelling dialogue with Ratul Puri, Chairman of Hindustan Power—a key force shaping the country’s evolving power landscape.
What unfolds is not just an interview, but a layered exploration of India’s renewable journey—where ambition meets infrastructure realities, and where storage emerges as both a challenge and a game-changer. From bottlenecks in hybrid energy deployment to the economics of battery storage, and from digital intelligence to future-ready technology bets, this conversation navigates the fine balance between risk and resilience.
This is more than a corporate Q&A; it is a blueprint for the 2030 energy horizon. We invite our readers to immerse themselves in this deep-dive discussion, where the Chairman of Hindustan Power reveals why the future of power belongs not to the boldest bidder, but to the finest executor.
Read on to uncover the anatomy of India’s dispatchable future.
India is rapidly moving from renewable ambition to execution at scale. What are the biggest on-ground bottlenecks Hindustan Power is currently facing in deploying storage-led hybrid assets and how are you solving them differently?
The renewable sector in India is shifting from rapid capacity addition to coordinated system-level optimisation. Although solar and wind capacities have been added at a rapid scale, the sector has been facing issues such as land acquisition, tenancy, as well as forest clearances, which need to be addressed through policy developments to streamline the sustained progress.
Transmission remains a parallel constraint. Delays in network readiness have led to over 50 GW of renewable capacity under development being impaired. At the same time, this is accelerating investments in grid infrastructure and more integrated planning approaches. Further, the pending projects that are facing issues of unsigned PSAs due to the changing procurement strategy of DISCOMs and large off takers needs to be accelerated as well.
While storage is being positioned as the backbone of dispatchable energy, concerns around high capex and unclear revenue stacking still persist. What needs to change—policy, pricing, or technology—for storage to become truly self-sustaining without heavy support?
India’s BESS market is transitioning from aggressive tendering to execution-led scale. In 2025 alone, ~102 GWh of tenders were issued, but only ~0.7 GWh is operational, highlighting a shift from bidding capability to execution capability.
While tariff compression has helped speed up adoption, it also focuses attention on execution discipline, finance and supply chains. As the projects progress towards commissioning through 2026, it will be less about bids and more about execution strength. Policy support through waivers of ISTS charges and state-level mandates has helped establish storage as an accepted asset class.
The next step will be to build additional revenue streams beyond arbitrage into ancillary services. Financing models are also undergoing a shift, with VGFs providing early traction and gradual progress towards commercialisation with improved clarity in regulations.
In a market increasingly driven by aggressive tariff bidding, how does Hindustan Power ensure long-term project viability without falling into the underbidding trap that could compromise performance later?
In a tariff-compressed market, long-term viability is heavily reliant on a lifecycle-based approach to project evaluation. There is an increasing divergence between discovered tariffs and actual lifecycle costs, such as capex costs, augmentation cycles, degradation costs and efficiency loss costs. Those who have accurately factored these costs into their financial modelling are well-equipped to deliver long-term returns.
Our approach is to focus on execution over a bid-win strategy. With narrow margins, small cost variances can have a material impact on returns. We look for opportunities with offtake clarity and policy support to ensure capital is deployed into bankable and executable projects.
Hybrid projects combining solar, thermal and BESS look promising on paper. But operationally, they are complex systems. What are the integration challenges you’ve faced and how are you building internal capabilities to manage this complexity at scale?
The operational complexities involved in hybrid projects include different response times and control logics for solar, thermal and BESS plants.
The Energy Management System (EMS) acts as the central control unit, facilitating the optimisation of dispatch in real time. With the implementation of the Energy Management System, the forecasting and scheduling functions assume the characteristics of multi-layered precision.
The challenges include the interoperability of OEM systems, battery degradation and grid stability, especially during low-inertia operating scenarios. The operational philosophies also vary for each asset class.
The development of internal capabilities for handling digital integration and system coordination assumes importance for the large-scale deployment of plants.
With India opening up ancillary service markets, do you see real revenue potential in services like frequency regulation and peak saving, or is the market still too nascent to rely on?
The market for ancillary services in India is evolving. Existing services like RRAS and TRAS are focused on frequency balancing. The contribution of these services to revenue is yet to be substantial. Hence, these services are still ancillary and have not yet reached a level that can independently contribute to project bankability. However, the strategic importance of these services is crucial for the ecosystem.
In the future, with the advent of competitive pricing for these services, fast-response services will start to command high value, especially with respect to BESS. These services are recognised globally as being of prime importance. India is strongly advancing in the same direction.
With rapid evolution in battery chemistries (LFP, sodium-ion, flow batteries), what is your technology selection strategy today—and how do you avoid the risk of investing in technologies that may become obsolete within a decade?
At Hindustan Power, we are focused on balancing reliability with future readiness. For the near-term, our focus remains on proven chemistries such as LFP, where bankability and performance certainty remain critical. Simultaneously, we are selectively focusing on emerging technologies like sodium-ion and flow batteries at a smaller scale to stay ahead of the curve.
LFP has emerged as the dominant global chemistry (70–80%+ share), supported by its safety profile, longer cycle life and established operating history, making it the default choice for grid-scale deployments. Further, sodium-ion batteries and emerging technologies like flow batteries have structural advantages, such as reduced lithium use and the potential for long-duration storage.
We remain focused on developing flexible portfolios that apply existing technologies with options for the future.
In our last Interview, you mentioned predictive analytics and digital optimisation. Going deeper—how is data actually influencing real-time decision-making and profitability in your projects, beyond just monitoring?
Digital solutions have become the nerve centre of energy asset operations, no longer just focused on monitoring but actively driving the operation and profitability of energy assets.
Real-time analytics allow for demand forecasting and dynamic dispatch, enabling energy assets to respond to market signals and obtain higher tariffs.
Predictive maintenance monitors every parameter and overall performance trend, ensuring that issues are identified, reducing downtime and extending asset life. Additionally, systems track price spreads across DAM, RTM and grid services in real time, dispatching power to the most profitable markets.
This constant optimisation not only increases the efficiency of energy assets but also enhances their overall long-term value.
Under the leadership of Ratul Puri, Hindustan Power is betting big on storage-led assets. What is the one strategic risk you are taking today that could either define your leadership—or challenge it—in the 2030 energy landscape?
The key strategic risk revolves around scale in a market which is gradually shifting from global supply chains. India’s import dependency in the battery manufacturing sector makes it vulnerable to geopolitical risks. Even marginal cost increases can have a material impact on IRRs in an environment with low margins. In addition, the lack of clarity in pricing mechanisms, recycling and end-of-life ownership also poses risks.
Still, with storage being a key enabler of grid stability and renewable energy integration, the sector is likely to witness large-scale investments until 2030. The challenge will be to navigate these risks while developing scale, capability and execution strength.
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