Interview: Sanjay Gupta

CEO at Apollo Green Energy Ltd.

Apollo Green Energy Prepares to Venture into Storage and Hydrogen Projects

September 05, 2025. By Abha Rustagi

I see hybrids becoming the default design in high- penetration zones, said Sanjay Gupta, CEO, Apollo Green Energy Ltd., in an interview with Abha Rustagi, Associate Editor, Energetica India.

Que: India’s renewable capacity is scaling rapidly, yet curtailment levels are increasingly becoming part of India’s renewable energy story. From your perspective, how serious is the curtailment challenge today, and what trends are you observing?

Ans: Curtailment is noticeably higher than it was a few years ago. In my opinion, this is a classic supply problem: supply is increasing faster than grid flexibility. Since 2019, India has curtailed about 1,410 GWh of solar energy. This number is significant but still a small portion of the total output. Most curtailments happen on bright afternoons with low demand when frequency and corridor limits become an issue. The ministry has recognised that these curbs are being used to stabilise the system and manage congestion where transmission does not keep up with new construction. The message here isn’t to stop building renewables; it’s to add flexibility and infrastructure at the same rate. Globally, systems with high renewable energy integration see similar trends. The challenge lies in turning this data into priorities for siting, storage, and grid upgrades.


Que: Are India’s current regulations and contractual frameworks adequate to safeguard renewable producers against curtailment losses, or do you see a need for stronger policy interventions?

Ans: The fundamentals exist, but we need sharper execution and standardisation. India already recognises “must-run” for solar and wind, and the centre has previously reminded operators that curtailment should be only for grid safety and with reasons recorded, good principles that now need consistent, modern enforcement. As penetration rises, contracts should reward deliverability (shape, firm blocks, and availability) rather than just raw MWh. Two practical moves:

(1) Standard curtailment protocols with clear thresholds and compensation; (2) procurement that explicitly values flexible, shaped supply and ancillary services. This reduces uncertainty and crowds in capital without over-engineering. In parallel, fast-tracking transmission and storage projects, already signalled by the centre will lower the need for curtailment in the first place.


Que: Installed renewable capacity is expanding rapidly, but generation often outpaces the grid’s ability to absorb it. How do you view this tension between fast capacity growth and the slower pace of grid adaptation?

Ans: Renewables deploy in 12–18 months, whereas high-capacity lines and substations take years. That timing gap is where curtailment lives. India’s success is undeniable: we’ve crossed 50 percent non- fossil in installed capacity ahead of schedule, yet actual generation still depends on when and where electrons can flow. The key policy takeaway is not to slow down solar development. Instead, we should expand the grid, improve system services, and develop storage alongside new capacity. When curtailment occurs, it shows us which corridors need upgrades, where grid-level storage can ease pressure, and how market design should change. Treat this as feedback from an evolving system, not as a judgment on the energy transition.


Que: Battery energy storage is being seen as a solution to absorb excess power and smoothen supply. What models - utility-scale, co-located, or grid-level, look most viable in the Indian context today?

Ans: Each solves a different constraint. Co-located batteries reshape a plant’s output and shift energy into the evening. Grid-level batteries tackle congestion and frequency, offering fast response near stressed nodes. For long duration, pumped hydro remains the most cost-effective backbone if sited well. Two enablers determine bankability: (i) clear revenue stacks (arbitrage, capacity/flex payments, ancillary services), and (ii) dependable timelines for grid interconnection.

Costs are moving our way, recent analyses of winning bids imply battery pack prices available to Indian developers near ~USD 60/kWh, so with the right contracting, scale can follow quickly. In practice, I expect a layered build-out, i.e., targeted grid batteries now, co-located storage at new hubs, and pumped hydro for seasonal balancing.

That’s why we are preparing to enter storage and hydrogen projects in partnership with global players. Having an EPC foundation gives us insight into where co-located storage can solve local constraints, and where grid-level systems make more sense.


Que: Do you see hybrid projects such as solar paired with storage or other complementary sources, emerging as a structural solution to the curtailment challenge?

Ans: Yes, hybrids move us from ‘energy when the sun shines’ to energy when the system needs it. Pairing solar with storage (or complementary sources) flattens the midday spike, shifts delivery into the evening ramp, and cuts the very peaks that trigger curtailment. That improves scheduling for operators and stabilises revenues for developers. It’s not theoretical: India already tracks hybrid components in its capacity statistics, and procurement is increasingly about shaped or firm blocks rather than unshaped MWh. Over time, I see hybrids becoming the default design in high- penetration zones, not because they’re trendy, but because they align technology, contracts, and grid operations around reliability.

Hybrids will become mainstream, and we’re already seeing this in tenders. Our subsidiary structure, where we retain EPC work but also participate in PPA-linked projects, allows us to test hybrid models in practice, not just theory. It’s a natural progression for a market moving toward firmed renewable supply.


Que: What are the biggest infrastructure bottlenecks contributing to congestion, and how quickly can transmission and grid upgrades realistically catch up with renewable additions?

Ans: Two issues dominate: distance (resource-rich zones vs. demand centres) and sequencing (plants energise faster than lines). The ministry has explicitly cited congestion and delayed transmission as drivers of curtailment, so the remedy is unsurprising: accelerate corridor build-out, modernise operations, add node-proximate storage, and use better forecasting/dynamic ratings to squeeze more from existing assets. Internationally, similar gaps have caused visible curtailment; the fix has been a mix of new cables, grid-scale batteries, and smarter markets. India’s ability to deliver big infrastructure under pressure gives me confidence that, with tight execution, the curtailment curve can bend down over the next few years.


Que: Looking ahead, what mix of solutions, storage, hybrids, transmission expansion, demand flexibility will be most critical to ensure that curtailment does not become a structural barrier to India’s 2030 clean energy goals?

Ans: Think in three lanes that move together: Wires, Flex, Markets.
• Wires: Front-load transmission and substations in lockstep with new RE hubs.
• Flex: Scale storage batteries for fast response and congestion relief, pumped hydro for long duration and normalise hybrid procurement to buy “shape,” not just energy.
• Markets & Ops: Improve forecasting and scheduling, enable ancillary markets, and use price signals to pull flexible demand. India’s long-term target of 500 GW non-fossil by

2030, is achievable if we integrate as fast as we build. Other mature systems show that even with rising curtailment incidents, >95 percent of renewables can still reach end-users when grids and storage keep pace.

We see the same playbook inside Apollo Green Energy Limited- build capacity, pair it with storage, and plan grid connectivity early. Our strategic growth is aligned with India’s broader journey & moving from megawatts to megawatt-hours, from capacity to integration. If that alignment continues, 500 GW by 2030 is entirely realistic.


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