India’s power sector is increasingly moving towards hybrid and energy storage projects as planners look to strengthen supply reliability and better manage the growing share of renewable energy, according to a report by Nuvama Research, ANI reported.
The report said India currently has adequate solar power availability, with electricity prices during solar hours remaining low at about Rs 4.3 per unit in January 2026. During daytime solar hours, supply exceeded demand, resulting in almost no power shortage and indicating comfortable availability of solar energy.
While solar-hour supply remained strong, power availability during non-solar hours stayed largely unchanged, suggesting steady and balanced supply outside daytime periods.
Against this backdrop, overall power demand in the country rose by 4.8 per cent year-on-year in January 2026, even though temperatures during the month were similar to those a year earlier. The report said the rise in demand reflects continued strength in electricity consumption across sectors.
Peak power demand also increased during the month, rising by around 3 per cent to about 245 gigawatts in January 2026, compared with roughly 237 gigawatts in January 2025. This points to growing energy needs as economic activity expands.
Thermal power generation continued to play a steady role in meeting demand. The all-India thermal plant load factor stood at 67.7 per cent in January 2026, marginally lower than 68.8 per cent recorded in the same month last year, indicating broadly stable use of thermal capacity.
Electricity trading volumes saw a sharp rise during the month. Power traded on the Indian Energy Exchange increased by nearly 20 per cent year-on-year in January 2026, supported by a strong jump of more than 50 per cent in real-time market volumes. However, overall growth was limited by a decline in renewable energy certificate trading.
The report noted that the increasing focus on hybrid and storage-based projects is aimed at improving grid stability and ensuring reliable power supply as renewable energy capacity continues to expand across the country.
