The Union Cabinet cleared a Rs 14,500 crore scheme on 4 November to build large energy storage systems supporting India’s solar and wind.

The money comes as viability gap funding, which is government support for projects that would otherwise cost too much to build.

It covers FY27 to FY31 and targets 92 GWh of new capacity. That includes 60 GWh of pumped storage, 30 GWh of battery storage and 2 GWh of other storage technologies.

Total investment in these projects is estimated at Rs 97,600 crore. Power distribution companies, public and private, can seek support for battery and pumped storage projects.

Solar and wind power do not flow all day. Storage lets the grid hold surplus electricity and use it later, such as after sunset.

Pumped storage pushes water uphill into a reservoir, then lets it fall through turbines when power is needed. Battery systems keep electricity in cells instead.

Battery projects under the scheme must use at least 40% domestic content. That condition aims to cut dependence on imports.

Separately, the Ministry of Heavy Industries has received 22 bids to set up 10 GWh of battery cell capacity meant for grid storage.

Bidding closed on 10 November and technical bids were opened the next day.

Bidders include ACME Solar Holdings, Exide Energy Solutions, Reliance Industries, JSW Neo Energy and Waaree Energy Storage Solutions.

The tender sits under a Rs 18,100 crore incentive scheme, cleared in May 2021, which targets 50 GWh of home-built cell capacity.

The Ministry of Power has also proposed changes to bidding rules for renewable energy and battery storage projects.

Battery storage purchase agreements would run for at least eight years. A payment security fund would have to cover at least three months of billing for linked projects.

Intermediary procurers could also collect up to Rs 5 lakh per MWh from battery developers, at the developers’ option.

These bidding changes are still proposals, and the Ministry of Heavy Industries has not yet announced who wins the 10 GWh of cell capacity.

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