India has announced a substantial investment of 145 billion rupees (approximately $1.5 billion) in subsidies aimed at developing 92 gigawatt-hours of energy storage capacity. This initiative is part of the country’s strategy to optimise its rapidly growing renewable energy resources and enhance its transmission infrastructure, as stated by Information Minister Ashwini Vaishnaw during a press briefing in New Delhi on Wednesday.

This financial support is set to continue until 2031, with the goal of enabling companies in the energy storage sector to launch their operations as the emerging market begins to flourish.

At present, India’s energy storage capacity stands at around 54 GWh, but the government has set an ambitious target to expand this to 411 GWh by the end of the financial year 2031-32.

The initiative aims to tackle a significant challenge in India’s energy transition, as the nation has been rapidly increasing its solar and wind generation capacity, surpassing what the grid can effectively manage. Since 2017, solar and wind capacity has surged fourfold to approximately 230 gigawatts, representing 41% of total installations. Substantial investments have also been made in transmission lines to facilitate the distribution of renewable electricity nationwide.

However, much of this infrastructure cannot be fully utilised continuously. Solar plants cease operations after sunset, and during daylight hours, the grid often struggles to accommodate the peak electricity generated by solar power.

These subsidies are designed to catalyse a total investment of 976 billion rupees and will mandate that companies seeking support procure at least 40% of their equipment domestically, thereby promoting local manufacturing.

The cabinet has greenlit substantial financial incentives exceeding 28 billion rupees to enhance the processing of essential minerals within the nation, as stated by Vaishnaw. This initiative is set to invigorate India’s manufacturing landscape across various sectors such as electronics, semiconductors, batteries, defence, and heavy machinery, while also aiding the country in diminishing its reliance on imports, he informed the press.

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