The Ministry of Power revealed plans to invest Rs 3.49 lakh crore by 2031-32 for a Battery Energy Storage System (BESS) capacity of 47.24GW/236GWh. Additionally, Rs 1.29 lakh crore will be allocated for Pumped Storage Plant (PSP) projects with a capacity of 26.69GW/175GWh by 2031-32.
NITI Aayog highlighted the increasing importance of energy storage in managing renewable energy variability. The government has implemented various measures to promote Energy Storage Systems (ESS), including BESS, as stated by Minister of State for Power Shripad Naik in response to a question in the Rajya Sabha.
Waivers on Inter-State Transmission System (ISTS) charges have been granted for BESS projects commissioned by June 2025, with gradual reductions thereafter. Similar waivers have been extended to PSP projects. Storage-based resources are now permitted by the Central Electricity Regulatory Commission to provide ancillary services, supporting grid balancing.
The Ministry of Heavy Industries is executing a production-linked incentive (PLI) Scheme worth Rs 18,100 crore to establish Advanced Chemistry Cell manufacturing capacity, with a significant portion allocated for grid-scale stationary storage. Infrastructure support is also being provided for hydro PSP projects, with varying levels of assistance based on project size.
