New Delhi, July 27 (ANI): The Government on Monday said India will require investments of nearly 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.
According to the Ministry of Power, the projected requirement for Battery Energy Storage Systems (BESS) is 47.24 GW/236 GWh by 2031-32, requiring an estimated investment of Rs 3.49 lakh crore. The projected 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, projects BESS capacity requirements of 8.68 GW/34 GWh by 2026-27 and 47.24 GW/236 GWh by 2031-32. PSP requirements are estimated at 7.45 GW/47 GWh by 2026-27, rising to 26.69 GW/175 GWh by 2031-32.
The government noted that energy storage will play a critical role in managing the variability associated with renewable energy integration. It cited NITI Aayog’s Sectoral Insights: Power (Vol. 7) report, released in February 2026, which highlighted energy storage as a key requirement for a reliable and resilient power system.
To accelerate deployment, the Centre has introduced a series of policy and regulatory measures, including amendments to the Electricity Rules recognising Energy Storage Systems (ESS) as an integral part of the power sector, inclusion of ESS in the Harmonised Master List of Infrastructure, issuance of a National Framework for Promotion of Energy Storage Systems, and new safety and construction standards for battery storage systems.
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-price day-ahead electricity markets, notified tariff-based competitive bidding guidelines, and approved Viability Gap Funding for 43.8 GWh of BESS capacity.
To strengthen domestic manufacturing, the Ministry of Heavy Industries is implementing a Production-Linked Incentive (PLI) Scheme with an outlay of Rs 18,100 crore for establishing 50 GWh of Advanced Chemistry Cell manufacturing capacity, of which 10 GWh has been 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 to the Electricity Rules. (ANI)
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