India approves Rs 145 billion to build grid scale energy storage

The Union Cabinet of India approved a viability gap funding scheme worth Rs 145 billion to develop 92 GWh of grid scale energy storage capacity.

The government will implement this scheme over five years from the 2026-27 financial year to the 2030-31 financial year. This funding supports projects that have not yet been commissioned to help the country reach a goal of 411 GWh of storage capacity by 2031-32.

The plan allocates 60 GWh for pumped storage projects, 30 GWh for battery energy storage systems, and 2 GWh for emerging storage technologies. Public and private distribution companies can access this funding for battery and pumped storage projects. The scheme also seeks to boost domestic manufacturing and lower the country's reliance on imports. To encourage local production, battery energy storage projects must include at least 40 per cent domestic content.

These projects are expected to involve a total investment of Rs 976 billion.