The government said India will need to invest about Rs 4.78 lakh crore in batteries and pumped storage by 2031-32 to support grid stability and renewable energy. This will bring a major change in the power mix of the country.
New Delhi, July 27 (ANI): The government on Monday said India will need to invest about Rs 4.78 lakh crore in battery and pumped storage projects by 2031-32, as it ramps up energy storage infrastructure to ensure grid stability and support the growing share of renewable energy in the country’s power mix.
huge investment required
According to the Energy Ministry, the estimated requirement for Battery Energy Storage Systems (BESS) by 2031-32 is 47.24 GW/236 GWh, requiring an estimated investment of Rs 3.49 lakh crore.
The estimated requirement for Pumped Storage Plants (PSPs) during the same period is 26.69 GW/175 GWh with an estimated investment of Rs 1.29 lakh crore.
The ministry said the National Electricity Plan (Generation) notified in May 2023 estimates the BESS capacity requirement to be 8.68 GW/34 GWh by 2026-27 and 47.24 GW/236 GWh by 2031-32. PSP requirement is estimated to be 7.45 GW/47 GWh by 2026-27 and 26.69 GW/175 GWh by 2031-32.
Why is energy storage important?
The government said energy storage will play an important role in managing the variability associated with renewable energy integration. It cited NITI Aayog’s Sectoral Insights: Power (Volume 7) report, released in February 2026, which highlighted energy storage as a key requirement for a reliable and resilient power system.
Government policies and measures
To accelerate deployment, the Center has introduced several policy and regulatory measures, including amendment of electricity rules to recognize energy storage systems (ESS) as an integral part of the power sector, inclusion of ESS in the Harmonized Master List of Infrastructure, issuance of a national framework to promote energy storage systems and new safety and manufacturing standards for battery storage systems.
Measures to boost demand
On the demand side, the government has provided 100 per cent waiver of Inter-State Transmission System (ISTS) charges for eligible co-located battery and pumped storage projects, enabled storage resources to participate in ancillary services and high-priced day-ahead power markets, notified tariff-based competitive bidding guidelines, and approved Viability Gap Funding for 43.8 GWh BESS capacity.
Strengthening domestic manufacturing and infra
To strengthen domestic manufacturing, the Heavy Industries Ministry is implementing a production-linked incentive (PLI) scheme with an outlay of Rs 18,100 crore to set up 50 GWh advanced chemistry cell manufacturing capacity, of which 10 GWh is earmarked for grid-scale stationary storage. The government has also announced infrastructure support for hydro pumped storage projects and expanded ownership models for energy storage systems through amendments in electricity regulations. (ANI)
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