India’s $1.5 billion energy storage scheme aims to develop 92 GWh of grid-scale storage capacity between 2026-27 and 2030-31, with the government expecting to attract around $10 billion in investments. The initiative will support pumped hydro, battery storage and emerging technologies to strengthen energy security and renewable energy integration.
India Approves ₹14,500 Crore Energy Storage Scheme
India’s energy storage initiative is expected to attract around $10 billion in investments over the next five years, as the country accelerates efforts to strengthen energy security and integrate renewable power into its electricity network. According to a report by Khaleej Times, the government has approved a $1.5 billion scheme to develop 92 gigawatt-hours (GWh) of grid-scale energy storage capacity between 2026-27 and 2030-31.
The scheme will support 60 GWh of pumped hydro storage, 30 GWh of battery storage and 2 GWh through emerging technologies. Announcing the Cabinet approval, Prime Minister Narendra Modi said the ₹14,500 crore initiative would improve power reliability, facilitate renewable energy integration and strengthen the country’s energy security.
The proposed capacity is equivalent to approximately 170% of India’s existing grid-scale energy storage capacity. The initiative comes as India faces rising electricity demand and seeks to reduce its vulnerability to global energy disruptions. The country has set a target of achieving 500 GW of non-fossil fuel-based electricity capacity by 2030 and net-zero emissions by 2070.
Energy Storage Critical for Renewable Power Expansion
Despite the rapid expansion of solar and other renewable energy sources, energy storage remains a critical requirement for maintaining a reliable electricity supply. Solar power generation is highest during daylight hours, while electricity demand often increases in the evening when solar output declines.
Grid-scale storage facilities can bridge this gap by storing surplus renewable electricity for use when generation falls. They can also reduce the wastage of renewable power and help limit dependence on coal-fired power plants.
According to the Khaleej Times report, the government estimates that India will require around 411 GWh of grid-scale energy storage by 2031-32. This includes 236 GWh of battery storage and 175 GWh of pumped hydro storage. The latest scheme is expected to contribute significantly towards meeting this requirement.
Scheme Promotes Domestic Manufacturing and Critical Minerals
The initiative also aims to encourage domestic manufacturing of battery energy storage systems, reduce import dependence and strengthen long-term energy security. Battery storage projects supported under the scheme will be required to meet a minimum 40% domestic content threshold.
Separately, the government has approved a $300 million scheme to establish four domestic processing plants for lithium and nickel. These critical minerals are important inputs for batteries, energy storage systems and electronic products. Together, the measures are intended to strengthen India’s domestic energy storage supply chain and support its renewable energy ambitions.
India’s energy storage scheme represents a major step towards building the infrastructure needed to support large-scale renewable energy integration. With a targeted capacity of 92 GWh and an expected investment of $10 billion, the initiative could encourage private investment, expand domestic manufacturing and improve the reliability of India’s power system.
