TL;DR
Get backup power and energy gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
India approved viability-gap funding for energy storage projects totaling 92GWh across battery energy storage systems and pumped hydro. The government estimates the projects will represent ₹976 billion in investment and has set a 40% domestic-content requirement; project-level allocations and delivery timelines are not specified in the source report.
India has approved viability-gap funding to support 92GWh of battery energy storage and pumped hydro, expanding a government programme aimed at making storage projects financially viable. The government estimates the projects will represent ₹976 billion in investment and has set a requirement for at least 40% domestic content.
The funding is intended to help close the gap between project costs and the revenue storage developers can earn, according to the report. The approved capacity combines battery energy storage systems (BESS) and pumped hydro energy storage (PHES). The source does not give a breakdown of the 92GWh between the two technologies, identify individual projects or specify how much funding each will receive.
The government’s estimate of ₹976 billion refers to investment represented by the capacity, not to the amount of public funding approved. The report does not state the total funding allocation attached to the latest approval. It also says the domestic-content requirement has been raised to 40%; the programme previously required a minimum of 20% domestic content, according to the report.
The scheme’s earlier stages offered support of up to 40% of project capital expenditure for 4GWh of projects intended for delivery in 2030–31. It was subsequently expanded to 13.2GWh. A further ₹54 billion was announced in June 2025 to support 30GWh of battery storage, the report says. Those earlier programme figures describe previous stages and should not be confused with the investment estimate for the newly approved 92GWh.
Storage Support Meets Rising Demand
The approval could help accelerate storage procurement as India adds renewable generation that does not produce electricity continuously. Batteries can shift electricity over shorter periods and provide grid services, while pumped hydro can store energy by moving water between reservoirs. Both can help balance supply and demand, though their costs, operating profiles and project-development timelines differ.
The scale matters against the need described by India’s Central Electricity Authority (CEA). At an October summit, CEA deputy director Prashant Bhamu said the country had 5.3GWh of operational battery storage and 185GWh under development. He also cited long-term resource-adequacy planning that indicates about 888GWh of storage may be required by 2035–36, including both batteries and pumped hydro. The approved 92GWh is a programme target or supported capacity, not evidence that the projects are already built or operating.
The domestic-content rule also ties storage deployment to local supply chains. Prime Minister Narendra Modi described the approval on X as a “massive” push for storage and called the 40% requirement a “unique feature.” The requirement may shape procurement and project costs, but the source does not detail how compliance will be measured or what exemptions, if any, may apply.
Industry participants have argued that subsidies can help establish an early market but cannot replace revenue arrangements over time. Oyster Renewable COO Ateesh Samant told Energy-Storage.news that the next step should be market design that pays storage for flexibility, capacity and grid services. That distinction matters: funding can reduce upfront costs, while long-term commercial viability depends on how projects earn money after construction.
Products Worth Considering
Anker SOLIX C1000 Gen 2 Portable Power Station, 1,024Wh
Sonos Play Portable Wi-Fi and Bluetooth Speaker, White
Bose SoundLink Plus Portable Bluetooth Speaker, Black
As an affiliate, we earn on qualifying purchases.
How the Funding Scheme Expanded
The viability-gap funding programme was put forward in India’s 2023–24 Union Budget. Its purpose is to support projects that may provide broader system benefits but do not yet earn enough from the market to attract investment on ordinary commercial terms. Earlier support covered 4GWh of projects, with assistance of up to 40% of capital expenditure, and the programme later expanded to 13.2GWh, according to the source report.
In June 2025, the Ministry of Power announced an additional ₹54 billion for 30GWh of battery storage. At the beginning of 2026, the government set a minimum 20% domestic-content requirement for the scheme, which the latest approval raises to 40%, the report says. The new 92GWh approval is a further expansion, though the report does not provide a detailed schedule for individual project awards or construction.
Separate policy developments point to a wider effort to incorporate storage into electricity planning. Reuters reported that Ministry of Power Secretary Pankaj Agarwal said mandatory storage requirements for state utilities would be introduced and that more clean-energy tenders involving storage were expected. Reuters also reported Agarwal described the situation as “fluid” regarding the specific capacity requirements. Those proposed mandates are distinct from the funding approval and do not establish the final obligations for utilities.
““The next step is to move from capital support to market design. That means markets that pay storage for the flexibility, capacity and grid services it provides.””
— Ateesh Samant, COO of Oyster Renewable, speaking to Energy-Storage.news
Project Allocations Remain Unspecified
The report does not identify which projects will receive support, how the 92GWh will be divided between batteries and pumped hydro, or when the capacity is expected to enter service. It also does not state the total public funding approved for this expansion or clarify whether the earlier support rate of up to 40% of capital expenditure applies to all newly supported projects.
Further detail is needed on how the 40% domestic-content rule will be applied, including the components covered and the method used to verify compliance. The government’s ₹976 billion estimate is described as the investment represented by the projects, but the report does not set out its calculation or project-by-project assumptions. Separately, the specific storage obligations for state utilities remain fluid, according to Reuters’ account of Agarwal’s comments.
Tender Rules and Project Awards
The next substantive developments are likely to be the detailed programme rules, tenders or project awards that show how the 92GWh target will be delivered. Those documents would clarify project eligibility, funding amounts, technology allocation, domestic-content verification and delivery schedules. The source material does not give dates for those steps.
State utilities may also receive mandatory storage requirements, and the Ministry of Power secretary has said further clean-energy tenders related to storage are expected, Reuters reported. The timing and scale of those requirements remain unsettled. Until project lists and schedules are published, the approval signals policy support for a larger storage pipeline but does not confirm how much capacity will be built, or when it will be available to the grid.
Key Questions
What did India approve?
India approved viability-gap funding intended to support 92GWh of battery and pumped-hydro storage. The report does not identify the projects or provide a technology-by-technology breakdown.
Is ₹976 billion the amount of government funding?
No. The report describes ₹976 billion as the estimated investment represented by the projects. It does not state the total amount of public funding approved for the 92GWh expansion.
What does the 40% domestic-content requirement mean?
The scheme requires at least 40% domestic content, according to the report. It does not explain which project components count toward that threshold or how compliance will be checked.
How does 92GWh compare with India’s storage needs?
CEA official Prashant Bhamu said long-term planning indicates about 888GWh may be required by 2035–36, including batteries and pumped hydro. That is a planning estimate, not a guarantee that all capacity will be procured or built.
When will the supported projects be completed?
The source report does not provide completion dates, individual project schedules or an expected commissioning timeline for the newly approved capacity.
Source: energy-storage.news
