Govt to invest Rs 3.49 lakh crore to expand Battery Energy Storage System
New Delhi, July 27
The Ministry of Power informed Parliament on Monday that the government plans to invest Rs 3.49 lakh crore by 2031-32 for setting up a projected Battery Energy Storage System installed capacity requirement of 8.68 Giga Watt/34 Giga Watt hour by the year 2026-27 and 47.24GW/236 GWh by 2031-32.
Similarly, another Rs 1.29 lakh crore will be invested in the projected Pumped Storage Plant (PSP) installed capacity requirement of 7.45 GW/47 GWh by the year 2026-27 and 26.69 GW/175 GWh by 2031-32.
NITI Aayog, in its report, has mentioned that energy storage is going to emerge as a critical requirement for managing the variability associated with renewable energy integration. The Government has already undertaken a series of coordinated policy, regulatory, demand-side, and supply-side measures to promote the development and deployment of Energy Storage Systems (ESS), including BESS, Minister of State for Power Shripad Naik said in a written reply to a question in the Rajya Sabha.
These measures include a 100 per cent waiver of Inter-State Transmission System (ISTS) charges for BESS projects that have been commissioned by June 2025, with a 25 per cent annual reduction in waiver thereafter and Hydro Pumped Storage Projects (PSP) projects wherein construction work is awarded by June 2028.
For Co-located Battery Energy Storage Systems (BESS) projects, 100 per cent ISTS charges waiver has been extended for the projects commissioned up to June 2028. For Co-located PSP projects, 100 per cent ISTS charges waiver has also been extended for the projects for which construction work is awarded by June 2028.
Besides, the Central Electricity Regulatory Commission (CERC) has allowed storage-based resources to provide ancillary services, including secondary and tertiary reserves, enabling ESS to support real-time grid balancing alongside conventional generators.
The Ministry of Heavy Industries is also implementing a production-linked incentive (PLI) Scheme with an outlay of Rs 18,100 crore for establishing 50 GWh of Advanced Chemistry Cell manufacturing capacity, of which 10 GWh is earmarked for grid-scale stationary storage.
Enabling infrastructure support of Rs 1.0 crore per MW is also being provided for hydro PSP projects up to 200 MW. For projects exceeding 200 MW, support is provided at Rs 200 crore plus Rs 0.75 crore per MW, the minister added.
— IANS
Reader Comments
Great initiative by the government! But I hope they also focus on making these batteries affordable for common households. In our village, power cuts are still frequent, and inverters cost a bomb. A reliable and cheap storage solution would be a game-changer for rural India. 🇮🇳
Rs 3.49 lakh crore is a huge amount. While I appreciate the vision, I'm slightly skeptical about execution. We've seen many projects get stuck in bureaucratic red tape. Also, what about the environmental impact of lithium mining? Are we looking at recycling options? Need more transparency in the plan.
This is exactly the kind of forward-thinking infrastructure India needs. Battery storage is critical for grid stability, especially as more solar capacity comes online. The ISTS waiver is a smart move to encourage early adoption. Looking forward to seeing how this transforms the energy landscape!
Interesting to see the government also backing pumped storage alongside battery storage. Both have their pros and cons. I worry about the land required for pumped storage plants though. In a densely populated country, we need to be careful about displacing people. At least the PLI scheme for battery manufacturing is a step towards self-reliance.
A commendable move! The 100% waiver on transmission charges for early projects is a strong incentive. I've worked on renewable projects in the US, and storage is always the bottleneck. If India can pull this off, it will be a massive boost for global climate goals. Fingers crossed they achieve the 2032 targets! 🤞
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