Cabinet Approves Rs 14,500 Crore Scheme for 92 GWh Grid-Scale Energy Storage

The Union Cabinet on November 4, 2026, approved a Rs 14,500 crore viability gap funding scheme for grid-scale energy storage systems. The scheme covers the period from FY 2026-27 to FY 2030-31 and targets 92 GWh of new capacity that is yet to be commissioned.

Of the 92 GWh, 60 GWh will come from hydro pumped storage plants, 30 GWh from battery energy storage systems and 2 GWh from alternative technologies. The projects are expected to draw an estimated total investment of Rs 97,600 crore. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision after the Cabinet meeting chaired by Prime Minister Narendra Modi.

The new capacity equals about 170 percent of India’s existing grid-scale storage. It is meant to help meet a projected requirement of 411 GWh by 2031-32. India currently has roughly 54 GWh of such capacity. The scheme supports the integration of renewable energy so that surplus daytime generation can be stored and used when solar and wind output falls.

Public and private distribution companies can receive support for battery and pumped hydro projects. Alternative technology projects can be developed by public or private entities. Capacity will be allocated through tariff-based competitive bidding. The funding is intended to improve financial viability and speed deployment.

The Cabinet also approved a separate Rs 2,814 crore scheme for domestic processing of critical minerals over the same five-year period. That measure aims to reduce import dependence for materials used in batteries and other clean energy equipment. A third approval covered a Rs 4,371 crore programme for statistical infrastructure.

Storage is needed because India targets 500 GW of renewable capacity by 2030. Without adequate storage, grid operators face challenges balancing supply and demand. Vaishnaw noted that storage can multiply the effective use of existing transmission lines. The scheme provides demand-side support that can also encourage domestic manufacturing of battery systems.

Details on exact project locations and timelines will emerge as states and developers respond to the bidding process. The measures form part of broader steps to strengthen power infrastructure and energy security while moving toward round-the-clock renewable supply.