India approves ₹14,500 crore battery storage scheme targeting 92 GWh capacity

India's Cabinet has approved a ₹14,500 crore viability gap funding scheme designed to catalyse development of utility-scale energy storage systems across the country. The initiative represents a significant push to address storage bottlenecks that have constrained the integration of renewable energy into the national grid.

The scheme encompasses three distinct storage technologies with differentiated targets. Battery Energy Storage Systems will account for 30 GWh of the total 92 GWh capacity being developed, while Pumped Storage Projects will contribute 60 GWh. An additional 2 GWh allocation has been reserved for emerging storage technologies, signalling the government's intent to support innovation in the sector.

Energy storage has emerged as a critical infrastructure gap as India accelerates its renewable energy deployment. The variability of solar and wind power requires large-scale storage solutions to ensure grid stability and reliable power supply. The viability gap funding model is designed to bridge the cost differential between project expenses and revenue generation, making storage projects economically viable for developers.

The initiative aligns with India's broader renewable energy ambitions and climate commitments. By expanding storage capacity, the scheme is expected to facilitate smoother integration of renewable sources while reducing curtailment losses and improving grid reliability across different regions.

Implementation of the scheme will be monitored through established government frameworks to ensure timely project execution and adherence to technical specifications.