India approves $1.5 billion scheme for development of 92 GWh ESS

What happened

The Indian government has approved a Viability Gap Funding (VGF) scheme for the development of grid-scale energy storage systems (ESS), with total financial support of INR 145 billion (about USD 1.5 billion) for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development of 92 GWh of yet-to-be-commissioned energy storage capacity across the country, equivalent to 170% of India's present-day grid-scale ESS capacity, and to help meet the required grid-scale ESS capacity of 411 GWh by 2031-32. It envisages 60 GWh of Hydro Pumped Storage Plant (PSP) capacity, 30 GWh of BESS capacity and 2 GWh through alternative energy storage technologies, with a total estimated investment of INR 976 billion (about USD 10.4 billion). To promote indigenous manufacturing, BESS projects will be subject to a minimum Domestic Content Requirement (DCR) of 40%. The government said the scheme aims to strengthen domestic energy storage manufacturing and reduce dependence on imported components; as of the report, the supported storage projects remain planned and are not yet commissioned.

Impact and signal

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Source and time

Source: Evertiq · 11/9/2026 · View original source