Union Cabinet on Wednesday approved a ₹14,500 crore viability gap funding (VGF) scheme for the development of 92 GWh of grid-scale energy storage capacity across the country over a period of five years from 2026-27 to 2030-31, The Hindu reports.
The scheme aims to strengthen the country’s electricity infrastructure, improve renewable energy integration and ensure a reliable, round-the-clock power supply.
Information and Broadcasting Minister Ashwini Vaishnaw stated that the capacity to be added would comprise 60 GWh hydro pumped storage projects, 30 GWh of battery energy storage systems (BESS) and 2 GWh through new and emerging storage technologies.
The government says the projects are likely to bring investments of ₹97,600 crore.
This will bring incremental additions of the order of 170% of grid-scale energy storage capacity in India and help fulfill the estimated requirement of 411 GWh storage by the country in 2031-32.
The projects will be auctioned through tariff-based competitive bidding under the scheme. Battery storage projects will be subject to a minimum 40% domestic content requirement.
The government said the project would help offset intermittent renewable energy generation, enhance grid stability and empower India’s energy security.
