India’s renewable energy landscape has transitioned from standalone solar and wind installations to highly customized hybrid power projects that often include energy storage solutions.

The industry is now examining demand patterns and requesting that renewable energy producers specifically address peak demand, delivering reliable, dispatchable power round-the-clock, with additional customization based on regional or state-specific needs.

As the country aims to reach 500 GW of non-fossil fuel capacity by 2030, hybrid power solutions are being considered a critical tool to ensure firm, dispatchable, and cost-effective clean energy.

At the Mercom India Renewables Summit 2025, a panel discussion titled “Hybrid Power: Strengthening Grid Stability and Scaling Renewable Integration” brought together experts to discuss how combining solar, wind, and storage technologies is helping address India’s growing power demand while improving grid reliability.

The session featured Sanjeev Gupta, Director Technical and Projects at Hartek Group; Jonas Dalsgaard, Chief Commercial Officer (Sustainable Energy) at Howden Group; Dhananjay Kumar, Director of Corporate Affairs at ENGIE India; and Sivakumar V. Vepakomma, Director (Power System at Solar Energy Corporation of India.

Vepakomma opened the discussion by stating that future power tenders will be entirely hybrid and that the planning process has already shifted in that direction. He explained that tenders are increasingly structured around peak power demand, and the focus is now on designing solutions that provide continuous supply. SECI has begun incorporating demand-based renewable energy design into tender structures, including a higher share of battery storage where required. He emphasized that hybrid projects are no longer an innovation but are becoming the default model for procurement.

He also revealed that SECI has made changes to fast-track the power purchase agreement (PPA) process for hybrid projects by working more closely with power distribution companies to align tender design with their specific peak demand patterns. While the complexity of hybrid projects makes PPA negotiation more involved, power distribution companies are becoming more receptive as these projects offer viable and affordable alternatives to costly thermal power during peak periods.

Kumar highlighted the continued challenge of land acquisition and access to transmission. He explained that while hybrid projects offer the advantage of shared infrastructure, the practical bottlenecks of acquiring land and ensuring timely grid connectivity persist. In many rural areas, land titles are fragmented or unclear, which delays the acquisition process. Kumar noted that developers are now required to secure larger parcels of land, which adds to the complexity and timeline.

He also raised concerns about how regulatory frameworks differ significantly across states, especially when hybrid components like solar and wind are developed at separate sites. These inconsistencies create significant delays in project approvals and permitting.

Gupta pointed out that hybrid projects use transmission assets more efficiently by leveraging the complementary nature of solar and wind generation. Solar and wind energy often peak at different times, helping to smooth output and reduce grid strain. He said that storage adds another layer of reliability by allowing developers to meet peak demand and prevent curtailment. However, Gupta emphasized that developers must start transmission planning early, particularly when hybrid components are located at different sites, to avoid delays and regulatory roadblocks.

He also mentioned the growing relevance of repowering older wind projects. Older turbines already occupy many high-quality wind sites, but they have lower efficiency. Repowering these sites with hybrid systems could significantly boost output and optimize the use of existing grid infrastructure. However, Gupta cautioned that current policies and technical guidelines are not fully supportive of repowering, and this issue needs to be addressed.

Dalsgaard brought an insurer’s perspective to the conversation, explaining that the success of hybrid projects depends not just on technical feasibility, but also on risk management and bankability. He explained that insurance is often a prerequisite for financing and that developers must treat insurance as a strategic function, not a back-office task. He stated that well-structured projects with clear risk allocation are more attractive to insurers and investors. Governments and financiers could even treat insurance as a project quality barometer. If a project cannot secure insurance, it is likely to lack structural resilience or proper governance.

He noted that the insurance market has already adapted to hybrid technologies and has experience managing risks across wind, solar, and battery storage. He encouraged developers to involve insurers early in the project development phase to benefit from the industry’s extensive global knowledge.

Dalsgaard also warned against pushing all risk onto contractors or suppliers, saying that such an approach only adds to project fragility. Instead, he called for transparent and fair risk-sharing among all stakeholders.

Vepakomma discussed how SECI has been refining its tendering process based on past experiences. It learned considerably from earlier efforts to standardize pricing across the country through a concept known as one nation, one tariff. This confusion led state regulators to lack visibility into the central procurement pipeline. SECI has since adopted a three-year rolling procurement block, which allows for better planning, price discovery, and alignment with state-level needs. Vepakomma also mentioned that SECI has begun using empirical formulas in tender evaluations to ensure technology neutrality and fairness in competition.

The panel discussed whether hybrid components should be co-located or developed at separate sites. While co-location simplifies logistics and operations, Kumar explained that site-specific resource availability and state-wise policy differences often make it difficult. Developers must therefore conduct detailed site assessments to determine whether to opt for a co-located or split-site configuration. The lack of grid data transparency also complicates these decisions. Developers often struggle to access real-time data on congestion and available transmission capacity, which affects project design and risk management.

When asked about best practices for developers, the panelists agreed that hybrid projects require early-stage risk assessment, close coordination with authorities, and proactive community engagement. Dalsgaard emphasized that companies demonstrating strong risk governance and transparency are more likely to attract insurance and capital. Kumar noted that in today’s market, delivery matters more than ambition, and companies should focus on execution rather than just signing large order books.

Vepakomma concluded by reaffirming SECI’s commitment to supporting India’s energy transition. He shared that SECI has signed over 60 GW of power purchase agreements and is working to streamline tender processes, further reduce project risks, and support innovation. He added that hybrid projects are no longer just an alternative to fossil fuels, but a scalable, reliable, and necessary part of India’s energy mix.

The panelists agreed that hybrid power is no longer a niche solution. With the right policies, coordination, and planning, hybrid systems are poised to become the foundation of India’s clean energy future.