The Government of India is stepping up efforts to develop and deploy large-scale energy storage capacity to support grid stability and enable the reliable integration of renewable energy.
To address the intermittency associated with renewable power generation, the government has adopted a coordinated mix of policy, regulatory, demand-side, and supply-side measures to promote Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs). These initiatives form a key pillar of India’s broader energy transition strategy.
Drawing on global best practices from countries with high renewable energy penetration, India is positioning energy storage systems to deliver critical ancillary grid services such as frequency control, voltage regulation, peak shifting, congestion management, and black-start support. Under the Central Electricity Regulatory Commission (Ancillary Services) Regulations, 2022, energy storage systems are now eligible to provide secondary and tertiary reserve ancillary services, strengthening real-time grid stability. Renewable Energy Management Centres have also been established to improve monitoring, forecasting, and scheduling of renewable power, while Automatic Generation Control systems are being used to balance supply and demand.
The government has put in place a long-term planning framework to guide the scale-up of energy storage capacity. The Central Electricity Authority (CEA) has estimated that India will require around 336 GWh of energy storage by 2029–30 and approximately 411 GWh by 2031–32 to ensure reliable renewable energy integration. Guidelines for Resource Adequacy Planning, issued in June 2023, formally incorporate energy storage as a core component of power sector planning. Together with the National Electricity Plan, these measures provide a roadmap for improving system reliability and supporting India’s clean energy transition.
Several policy and regulatory reforms have been introduced to accelerate deployment. Amendments to the Electricity Rules in December 2022 formally recognised energy storage systems as an integral part of the power system, allowing participation across generation, transmission, and distribution. Energy storage was also included in the Harmonised Master List of Infrastructure, enabling access to long-term and lower-cost financing. In addition, a National Framework for Promotion of Energy Storage Systems was issued in September 2023, outlining a comprehensive roadmap for market integration and regulatory support. Draft safety and technical standards for BESS installations were released in 2025 to enhance safety and standardisation.
On the demand side, the government has waived Inter-State Transmission System charges for co-located BESS projects and awarded pumped storage projects until June 2028 to improve project viability. Tariff-based competitive bidding guidelines for BESS procurement by distribution companies have been notified, while storage-based resources have been permitted to participate in ancillary services markets and high-price day-ahead electricity markets. Two viability gap funding schemes launched in 2024 and 2025 aim to support the development of around 43 GWh of battery energy storage capacity to accelerate early deployment.
Supply-side measures focus on domestic manufacturing and infrastructure development. The Ministry of Heavy Industries is implementing a ₹18,100 crore Production-Linked Incentive scheme to establish 50 GWh of advanced chemistry cell manufacturing capacity, including 10 GWh earmarked for grid-scale storage. Financial support has also been extended for pumped storage projects through grants for enabling infrastructure. Regulatory reforms have been introduced to fast-track project development, including easing grid connectivity norms, allowing flexible ownership models for energy storage systems, and removing statutory concurrence requirements for certain pumped storage projects.
To further enhance solar power dispatchability, the CEA has recommended co-locating energy storage systems with solar projects, with storage capacity of at least 10% of installed solar capacity for a minimum duration of two hours.
The measures were outlined by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply to the Lok Sabha, underscoring the government’s commitment to building a resilient, storage-backed renewable energy system to support India’s long-term clean energy and climate goals.
