The Union Budget has laid strong emphasis on accelerating grid-scale energy storage to enable seamless integration of renewable energy into India’s power system, Union Minister for New and Renewable Energy Pralhad Joshi said on Sunday.
Reacting to the budget proposals presented by Finance Minister Nirmala Sitharaman, Joshi said the government has taken a decisive step towards strengthening India’s renewable energy and energy storage ecosystem. He noted that the measures announced in the budget would support the country’s clean energy transition while improving grid stability and reliability.
A key highlight of the budget, according to the minister, is the extension of the Basic Customs Duty (BCD) exemption on capital goods used in the manufacturing of lithium-ion cells for batteries and Battery Energy Storage Systems (BESS). This move is expected to lower production costs, encourage domestic manufacturing and accelerate the deployment of large-scale energy storage solutions across the country.
Joshi said grid-scale energy storage is critical for managing the intermittent nature of renewable energy sources such as solar and wind. By supporting energy storage infrastructure, the budget aims to ensure round-the-clock availability of clean power and smooth integration of renewable energy into the national grid.
The minister added that the government’s focus on energy storage aligns with India’s broader climate goals and its commitment to increasing the share of non-fossil fuel capacity in the overall energy mix. He also highlighted that the budget reflects the government’s intent to create a robust ecosystem for advanced energy technologies while reducing dependence on imports.
Overall, Joshi said the budget reinforces India’s position as a global leader in renewable energy and provides a strong policy push for sustainable and resilient energy infrastructure.
