India’s Union Cabinet has approved the India Energy Storage Scheme, a new viability gap funding initiative to support the development of 92 gigawatt-hours (GWh) of grid-scale energy storage capacity.

The ₹14,500-crore (US$1.53 billion) financial package is intended to attract investment in large-scale energy storage infrastructure between the 2026–27 and 2030–31 financial years. Furthermore, Information and Broadcasting Minister Ashwini Vaishnaw announced the decision on November 4, 2026.

Through this programme, India aims to strengthen grid flexibility as it expands its renewable energy capacity. This is Adani Green Energy is expanding the Khavda Renewable Park in Gujarat, India . In particular, energy storage systems will retain surplus electricity when generation is high.

Consequently, they can release stored power when demand rises or solar and wind output declines. Additionally, the scheme could help improve renewable energy integration, grid stability and electricity supply reliability.

India’s 92 GWh Energy Storage Scheme:

The scheme covers three categories of storage technology. Of the planned 92 GWh, 30 GWh will come from battery energy storage systems (BESS), while 60 GWh will come from pumped storage projects. The remaining 2 GWh is allocated to emerging storage technologies.

Additionally, the programme is scheduled to run for five financial years, from 2026–27 to 2030–31. ₹14,500-crore support will help improve project viability and encourage developers to invest in storage assets. In addition, the overall investment required for the projects is estimated at ₹97,600 crore.

Battery Energy Storage Systems

Battery energy storage systems store electricity in electrochemical cells and release it when required. For example, grid-scale batteries can store surplus solar generation during the day and discharge electricity during evening demand peaks. Also, they will provide services that help maintain grid frequency and voltage.

Under the new scheme, 30 GWh of battery storage capacity is planned. Furthermore, supported battery projects will be subject to a minimum 40% domestic content requirement. This is intended to encourage local manufacturing and reduce reliance on imported components.

Pumped Storage Projects

Pumped storage uses two water reservoirs at different elevations. When electricity is available in excess, pumps move water to the upper reservoir. Later, the water is released through turbines to generate electricity when demand rises.

The scheme allocates 60 GWh to pumped storage projects, making this the largest share of the proposed capacity. Because these projects rely on reservoirs, turbines, pumps and associated electrical infrastructure, their development can involve substantial civil and mechanical engineering works. Site-specific designs, approvals and construction schedules will determine how individual projects proceed.

Emerging Storage Technologies

The remaining 2 GWh is intended for emerging energy storage technologies . These details will be important in determining which technologies qualify and how their performance will be assessed.

Construction and Infrastructure Implications

The scheme could create opportunities across India’s energy infrastructure sector. For battery projects, construction may involve battery containers, inverters, transformers, control systems, fire-safety equipment and grid connections.

Pumped storage developments may require reservoirs, tunnels, water conveyance systems, powerhouse structures and transmission connections.Additionally, the Cabinet announcement did not specificy project locations, contractors or construction start dates.

Supporting India’s Renewable Energy Targets

India is pursuing a target of 500 GW of installed electricity generation capacity from non-fossil fuel sources by 2030. Meanwhile, as solar and wind capacity expands, energy storage will become increasingly important for balancing variable electricity generation.

Furthermore, the Central Electricity Authority has identified substantial future requirements for both battery and pumped storage capacity

The proposed scheme complements existing government support for battery storage. Earlier viability gap funding programmes have also supported battery projects. Furthermore, transmission-charge incentives and competitive procurement guidelines have also been introduced.

In addition, the new programme could also help expand the range of storage technologies available to electricity distribution companies and grid operators.

Nevertheless, the scheme’s impact will depend on implementation. Developers will need viable tariffs, financing, grid connectivity, land and relevant environmental approvals.

Ultimately, the planned 92GWh capacity could strengthen India’s electricity infrastructure, but delivery will depend on project execution and commissioning.

India Energy Storage Scheme Project Fact Sheet

Project: India Grid-Scale Energy Storage Scheme

Location: India

Project type: Energy storage infrastructure

Financial support : ₹14,500 crore

Target storage capacity: 92GWh

Battery energy storage: 30GWh

Pumped storage: 60GWh

Emerging technologies: 2GWh

Implementation period: Financial years 2026–27 to 2030–31

Estimated total project investment: ₹97,600 crore

Purpose: Renewable energy integration, grid stability and electricity supply reliability

Project status: Cabinet approval announced November 4, 2026

India Energy Storage Scheme Project Team

Union Cabinet, Government of India: Approved the funding scheme.

Ministry of Power: Responsible for central electricity-sector policy and energy storage programmes.

Central Electricity Authority (CEA): Supports energy storage planning, technical standards and implementation monitoring.

Battery storage developers and pumped storage project developers: Expected to develop eligible projects through the applicable procurement and implementation processes.

Electricity distribution companies: Potential beneficiaries and procurers of storage capacity under the scheme.