India announces $1.5-billion scheme to add 92 GWh energy storage capacity

India has announced a $1.5-billion scheme to develop 92 gigawatt-hours (GWh) of energy storage capacity as part of its efforts to accelerate the shift towards renewable energy, the government said on Wednesday.

The scheme, which will run from 2026-27 to 2030-31, will support the development of 60 GWh of pumped hydro storage, 30 GWh of battery storage and another 2 GWh using emerging storage technologies.

The government expects the incentives to draw around $10 billion in investments over the next five years. The proposed capacity additions would amount to 170% of India's existing grid-scale energy storage capacity.


India, the world's third-largest greenhouse gas emitter, still depends heavily on coal to meet its rising electricity needs. With a population of more than 1.4 billion, the country's energy demand is expected to grow sharply in the coming years, even as it works towards its goal of achieving net-zero emissions by 2070.

Prime Minister Narendra Modi said the scheme would help improve power reliability, enable greater use of renewable energy and strengthen the country's energy security.

The Union Cabinet also cleared a separate $300-million scheme to support the setting up of four domestic processing plants for lithium and nickel, two minerals widely used in electric vehicle batteries, energy storage systems and electronic products.

India currently relies heavily on imports of these minerals. The government said building domestic processing facilities would be important to reduce that dependence.