India Accelerates Energy Storage Push to Meet 500 GW Non-Fossil Capacity Target by 2030

The Government of India has reaffirmed its commitment to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030, with a strong emphasis on scaling up energy storage systems to support the growing share of renewable energy.

With solar and wind power forming a significant portion of the future energy mix, their intermittent and variable nature has necessitated the rapid deployment of Energy Storage Systems (ESS). These systems play a critical role in storing surplus renewable energy during peak generation periods and ensuring round-the-clock electricity supply. Additionally, ESS supports grid stability through services such as frequency regulation, voltage control, and black start capabilities.

According to the National Electricity Plan (2023) released by the Central Electricity Authority (CEA), India will require approximately 208 GWh of Battery Energy Storage Systems (BESS) by 2030 to enable seamless integration of renewable energy into the grid. At present, around 35.8 GWh of BESS capacity is under construction across the country.

To drive this transition, the government has introduced a comprehensive set of policy, regulatory, and financial measures aimed at accelerating the deployment of energy storage technologies.

On the policy front, amendments to the Electricity Rules in December 2022 formally recognized ESS as a key component of the power system, allowing its participation across generation, transmission, and distribution segments. ESS was also included in the Ministry of Finance’s Harmonised Master List of Infrastructure, improving access to long-term and low-cost financing.

Further, guidelines for Resource Adequacy Planning issued in June 2023 incorporated energy storage as a critical resource for meeting peak demand. This was followed by the release of a National Framework for Promotion of Energy Storage Systems in September 2023, outlining a roadmap for deployment and market integration. Draft regulations for safety and technical standards for BESS were also issued in 2025 to enhance reliability and standardisation.

From a market development perspective, the government has enabled multiple demand-side interventions. These include the waiver of Inter-State Transmission System (ISTS) charges for co-located BESS projects commissioned until June 2028, and the introduction of Tariff-Based Competitive Bidding (TBCB) guidelines for storage procurement. The Central Electricity Regulatory Commission (CERC) has also permitted storage systems to participate in ancillary services and the High-Price Day-Ahead Market, strengthening their role in grid balancing.

Additionally, under the amended Electricity (Rights of Consumers) Rules, 2020, consumers relying on diesel generators are required to transition to cleaner alternatives such as energy storage within prescribed timelines. To further accelerate deployment, the government has launched two Viability Gap Funding (VGF) schemes aimed at supporting around 43 GWh of BESS capacity.

On the supply side, the Ministry of Heavy Industries is implementing a Production-Linked Incentive (PLI) scheme with an outlay of ₹18,100 crore to establish 50 GWh of Advanced Chemistry Cell manufacturing capacity, including 10 GWh dedicated to grid-scale storage. Regulatory changes have also enabled flexible grid connectivity and expanded ownership models, allowing consumers to develop, own, or lease energy storage systems.

In February 2025, the CEA issued an advisory recommending co-location of ESS with solar projects, suggesting storage capacity equivalent to at least 10% of installed solar capacity for a minimum duration of two hours to improve dispatchability.

State-wise data indicates that India currently has 798 MWh of installed BESS capacity for projects above 1 MWh. Bihar leads with 282 MWh, followed by Karnataka (150 MWh), Chhattisgarh (120 MWh), and Rajasthan (100 MWh), among others.