Energy Storage
Battery and Pumped Hydro Systems
Large-scale energy storage is essential for integrating intermittent renewable sources (solar and wind) into the grid. India requires an estimated 411.4 GWh of energy storage by 2031-32, comprising 236.2 GWh from Battery Energy Storage Systems (BESS) and 175.2 GWh from Pumped Hydro Storage Plants (PHSPs). Currently, deployment is far below these targets, creating a structural bottleneck for renewable integration.
- CEA estimate: 41.13 GW of BESS (5-hour duration) and 18.6 GW of pumped hydro needed by 2029-30
- India's total pumped hydro potential: 181.5 GW (both on-river and off-river); 38 projects with 50.67 GW capacity under various stages of development for commissioning by 2032
- Viability Gap Funding (VGF) for BESS: first announced in Budget 2023-24 for 4 GWh (40% capex support); expanded to 13.2 GWh with additional Rs 5,400 crore
- Energy Storage Obligation (ESO): introduced for distribution utilities; gradually increasing from 1% in FY2024 to 4% by FY2030
- Green Energy Corridor: transmission infrastructure programme to evacuate renewable energy from resource-rich states; Phase I (intra-state) and Phase II (inter-state) cover approximately 10,750 km of transmission lines
- Key challenge: renewable energy growth outpacing transmission infrastructure — projects await grid connection, leading to curtailment
● Tracked since February 12, 2026 · last seen August 03, 2026 · updates as the daily brief publishes
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