India's Union Cabinet approved ₹14,500 crore in public support for 92 GWh of grid-scale energy storage, aiming to improve project viability as variable renewable generation expands.
The five-year scheme runs from fiscal 2026-27 through 2030-31. Of the planned capacity, 60 GWh is assigned to pumped hydro, 30 GWh to battery energy storage systems and 2 GWh to alternative technologies. The 92 GWh is a target for future projects; the Cabinet announcement does not describe it as commissioned capacity. Estimated investment across the projects is ₹97,600 crore, including the viability-gap funding.
Storage can shift electricity across time, taking in renewable output when it is available and supplying power when generation declines, according to the Cabinet’s explanation for expanding capacity. The Prime Minister’s Office said the subsidy is intended to improve project economics as India adds renewable power. The Cabinet said storage capacity would be allocated in a competitive bidding process based on tariffs. Distributors in both the public and private sectors can apply for battery and pumped-hydro projects. Public or private entities may carry out projects using other storage technologies.
Battery projects must meet a minimum 40% domestic-content threshold. The government says the rule is meant to encourage Indian manufacturing and reduce dependence on imported components. The Cabinet notice does not identify how the rest of the estimated project investment will be financed.
The Central Electricity Authority’s National Electricity Plan puts India’s projected storage requirement at 411.4 GWh by fiscal 2031-32. Earlier support programs were also in progress. In its Feb. 5, 2026, release, the Ministry of Power said 13.22 GWh was under implementation through a ₹3,760 crore scheme. The government also approved a separate ₹5,400 crore program for 30 GWh in June 2025. Those figures concern earlier schemes, not capacity commissioned under the new program. The Cabinet notice gives no timetable for the first auction or for new projects to enter service.
