The Government of India has reiterated its commitment to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030, highlighting the critical role of Energy Storage Systems (ESS) in integrating renewable energy into the grid.
With solar and wind power forming an increasing share of India’s energy mix, their intermittent nature has driven the need for large-scale ESS deployment. These systems store surplus renewable energy during peak generation and ensure stable, round-the-clock electricity supply, while also supporting 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 around 208 GWh of Battery Energy Storage Systems (BESS) by 2030 to facilitate seamless renewable energy integration. Currently, approximately 35.8 GWh of BESS capacity is under construction across the country.
Policy and Regulatory Measures
To accelerate adoption, the government has implemented a range of policy, regulatory, and financial interventions:
- Recognition of ESS in Electricity Rules (2022): Energy storage is now a formally acknowledged component across generation, transmission, and distribution. ESS has also been included in the Ministry of Finance’s Harmonised Master List of Infrastructure, improving access to long-term financing.
- Resource Adequacy Planning (June 2023): ESS incorporated as a key resource to meet peak demand.
- National Framework for Promotion of ESS (September 2023): Roadmap for deployment and market integration.
- Draft BESS Standards (2025): Regulations for safety and technical standards to enhance reliability and standardisation.
Market Development Initiatives
The government has also introduced measures to encourage market participation and deployment:
- Waiver of Inter-State Transmission System (ISTS) charges for co-located BESS projects commissioned until June 2028.
- Introduction of Tariff-Based Competitive Bidding (TBCB) guidelines for storage procurement.
- Permission for storage systems to participate in ancillary services and the High-Price Day-Ahead Market.
- Under amended Electricity (Rights of Consumers) Rules, 2020, consumers using diesel generators must transition to cleaner alternatives, including energy storage.
- Viability Gap Funding (VGF) schemes launched to support around 43 GWh of BESS capacity.
Supply-Side Boost
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 for grid-scale storage. Flexible grid connectivity and expanded ownership models now allow consumers to develop, own, or lease ESS systems.
In February 2025, the CEA recommended co-locating ESS with solar projects, suggesting storage capacity equivalent to at least 10% of installed solar capacity for a minimum of two hours to improve dispatchability.
State-Wise Deployment
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), reflecting the country’s growing adoption of energy storage technologies.
The government’s multi-pronged strategy underscores India’s focus on building a flexible, reliable, and renewable-dominant power system, positioning ESS as a central component in the nation’s energy transition.
