The Government of India has stepped up efforts to develop and deploy energy storage capacities to address renewable energy intermittency and ensure grid stability, as the country advances its clean energy transition. A coordinated mix of policy, regulatory, market and manufacturing measures is being implemented to promote Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs) as integral components of the power system.

Drawing on global best practices from countries with high renewable energy penetration, India is positioning energy storage to deliver critical ancillary 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 have been made eligible to provide secondary and tertiary reserve services. Renewable Energy Management Centres and Automatic Generation Control mechanisms are also being deployed to support real-time grid balancing.

To guide large-scale deployment, the Central Electricity Authority has projected a requirement of around 336 GWh of storage capacity by 2029–30 and about 411 GWh by 2031–32. Energy storage has been embedded as a key resource in power sector planning through Resource Adequacy Plan guidelines issued in June 2023, alongside the National Electricity Plan.

Policy reforms include amendments to the Electricity Rules recognising energy storage as part of the power system, inclusion of storage in the harmonised infrastructure list to enable cheaper financing, and issuance of a National Framework for Promotion of Energy Storage Systems in September 2023. Safety and technical standards for BESS installations are also being strengthened through draft regulations.

On the demand and market side, waivers of inter-state transmission charges, tariff-based competitive bidding guidelines, and viability gap funding schemes covering about 43 GWh of BESS aim to improve project viability. Supply-side initiatives include a Rs 181 billion PLI scheme for advanced battery manufacturing and incentives for pumped storage development.

This information was shared by Shripad Yesso Naik, Minister of State for Power, in a written reply in the Lok Sabha.