India Unveils $1.5B Push to Expand Energy Storage Capacity

By Staff, Agencies

India has launched a $1.5 billion incentive program aimed at attracting around $10 billion in energy storage investments over five years, as the country seeks to expand renewable energy integration and strengthen its electricity infrastructure.

Announced on Wednesday, the scheme will run from 2026-27 through 2030-31 and support the development of 92 gigawatt-hours [GWh] of storage capacity, equivalent to a 170% increase over India's existing grid-scale capacity. Pumped hydro projects will account for 60 GWh, battery systems for 30 GWh, and emerging technologies for the remaining two GWh.

The initiative comes as India faces growing electricity demand while pursuing its target of net-zero emissions by 2070. Despite expanding renewable energy, the country remains heavily dependent on coal and is the world's third-largest greenhouse gas emitter.

Separately, India's cabinet approved a $300 million program to establish four domestic facilities for processing lithium and nickel, key minerals used in electric vehicle batteries, energy storage systems and electronics. The initiative aims to reduce the country's reliance on foreign supplies and strengthen domestic manufacturing.