Energy Storage
Introduction to the Energy Storage Subsector
Energy storage systems (ESS) are technologies that store energy for later use. In India, these systems are crucial for supporting renewable energy sources like solar and wind, which can be unpredictable due to weather and time of day. By storing excess energy when production is high and releasing it when demand peaks, ESS help keep the electricity grid stable and reliable. Common types include batteries (like lithium-ion), pumped hydro storage, and thermal storage. The government sees ESS as essential for achieving its clean energy goals and reducing carbon emissions.
Opportunities India is Working Towards in Energy Storage
- Grid Stability & Renewable Integration: ESS enable more renewable energy to be added to the grid by balancing supply and demand, reducing reliance on fossil fuels.
- Peak Shaving & Ancillary Services: They help shift energy use from peak to off-peak times, lowering costs and improving efficiency.
- Make-in-India Manufacturing: India is promoting domestic manufacturing of advanced batteries and storage technologies, aiming to become a global hub for battery production.
- Electric Mobility: ESS are vital for electric vehicles, which are a major focus for India’s clean transport future.
- Research & Innovation: Government agencies and institutes (IITs, IISc, NCL, etc.) are developing new battery chemistries and storage solutions.
Initiatives Launched in India
- National Framework for Promoting Energy Storage Systems (2023): Sets targets and guidelines for ESS deployment, including legal status, incentives, and standards.
- Viability Gap Funding (VGF) Scheme for Battery Energy Storage Systems (2023): Supports development of 4,000 MWh of battery storage with government funding.
- National Solar Mission & National Green Hydrogen Mission: Both include energy storage as a key component for integrating renewables and supporting hydrogen production.
- Production Linked Incentive (PLI) for Advanced Chemistry Cell (ACC) Batteries: Incentivizes domestic battery manufacturing.
- Guidelines for Pumped Storage Projects and Battery Storage Procurement: Streamline project approvals and encourage investment.
Projects Launched in the Past 3 Years
- 4,000 MWh Battery Energy Storage System (2023-2026): Approved under VGF, expected to reduce carbon emissions by 1.3 million metric tons annually.
- Solar Energy Corporation of India (SECI) Tenders: Multiple large-scale battery storage projects have been tendered and awarded since 2023.
- Research Projects: IITs, IISc, and other institutes have ongoing projects on new battery chemistries, grid-scale storage, and hybrid systems.
Data on Growth in the Subsector (Past 3 Years)
- Installed Renewable Energy Capacity: Increased from 81,593 MW to 198,213 MW by March 2024, with a CAGR of 10.36%.
- Energy Storage Capacity Requirement: Projected to rise from 82.37 GWh in 2026-27 to 411.4 GWh by 2031-32, and 2,380 GWh by 2047.
- Battery Storage Projects: Over 4,000 MWh of new battery storage capacity approved for development between 2023 and 2026.
- Renewable Share: As of 2025, renewables (including storage) account for nearly 48% of India’s total installed generation capacity.
