India Approves $19 Billion Renewable Energy Project

India’s Cabinet has approved a renewable energy project worth ₹1.86 trillion (US$19.42 billion), the country’s Information Minister said on Wednesday, aimed at upgrading the existing power grid and expanding energy storage capacity. According to a government statement, a ₹1.36-trillion initiative will strengthen inter-state transmission systems across Indian states to accommodate up to 135 gigawatts (GW) of clean energy generation. The funding approval comes as India strives to scale up its transmission infrastructure in tandem with monthly additions of new clean energy capacity. India has also announced an incentive scheme worth ₹500 billion to install 50 gigawatt-hours (GWh) of battery energy storage systems (BESS), reflecting the country’s current shortage of adequate storage infrastructure to retain clean energy generated during daylight hours. These incentives support India’s target of increasing non-fossil-fuel-based power generation capacity from the current 304 GW to 500 GW by 2030.

[Policy] India’s New Energy Storage Regulations: 411 GWh Demand Spurs Trillion-Rupee Market

2) Broadened Eligible Entities: Power generation companies, transmission license holders, distribution license holders, consumers, system operators, or independent energy storage service providers may all participate; 3) Clarified Legal Status: Any storage facility—regardless of location—is granted formal legal recognition if owned and operated by its owner, and may function as an independent unit coordinated by grid dispatch and operation centers; 4) Enhanced Commercial Flexibility: Developers or owners of energy storage systems may sell, lease, or rent their systems—either in whole or in part—to various entities. Investment Opportunities: Large-Scale Energy Storage Projects Alongside regulatory support, the Indian government has launched substantial financial incentive programs. Power Minister Manohar Lal announced an additional viability gap funding (VGF) scheme worth ₹54 billion to support the construction of 30 GWh of battery energy storage systems (BESS). This initiative aims to ensure round-the-clock availability of renewable energy and bolster grid stability across India. Program Details: - Funding Size: Total budget of ₹54 billion - Allocation Plan: 30 GWh total—25 GWh allocated across 15 states, and 5 GWh assigned to state-owned NTPC Limited - Tender Timeline: Bidding to commence within the next three months This incentive will be layered atop the existing ₹37 billion VGF program, under which 13.2 GWh of storage systems are already underway. The new program is estimated to attract investments totaling ₹330 billion. Additionally, the government has extended the exemption from inter-state transmission system (ISTS) charges for energy storage projects until June 30, 2028. Market Potential: 411.4 GWh of Energy Storage Systems India targets 393 GW of cumulative renewable energy installed capacity by 2030—including 293 GW of solar and 100 GW of wind power. Energy storage systems are critical to mitigating the intermittency inherent in renewable generation.

India to Mandate Energy Storage for State Power Utilities, Power Secretary Says

16 hours ago

India plans to issue regulations requiring mandatory energy storage for all licensed power buyers, including state utilities, according to Power Secretary Pankaj Agarwal.

reuters

2026-11-04

India to Mandate Energy Storage for State Power Utilities, Power Secretary Says

India to Mandate Energy Storage for State Power Utilities, Power Secretary Says

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