The Union Cabinet approved ₹14,500 crore in viability-gap funding on November 4 to support 92 gigawatt-hours of grid-scale energy storage capacity that has yet to be commissioned.
The government announcement sets the scheme’s duration from 2026-27 to 2030-31. It covers 60 GWh of pumped storage, 30 GWh of battery systems and 2 GWh using alternative storage technologies.
The government estimates total project investment at ₹97,600 crore. That figure is separate from the ₹14,500 crore funding support approved by the Cabinet.
Capacity will be allocated through tariff-based competitive bidding. Public and private electricity distribution companies can receive support for battery and pumped-storage projects. Battery projects must meet a minimum domestic-content requirement of 40%.
Storage can shift electricity from periods of surplus generation to periods of greater demand. The decision establishes financial support for future projects; it does not mean that the targeted capacity is already operating.
Archive illustration of a grid-connected battery installation in Rheineck, Switzerland, photographed in June 2024; not an Indian project funded under the scheme. Photo: Rheineck - Large Battery Storage Device by Kecko, CC BY 2.0. Display may be resized or cropped.
