{"id":76285,"date":"2026-06-09T17:30:24","date_gmt":"2026-06-09T12:00:24","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=76285"},"modified":"2026-06-09T17:55:57","modified_gmt":"2026-06-09T12:25:57","slug":"energy-storage-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/09-06-2026\/energy-storage-india","title":{"rendered":"Energy Storage in India For Scaling Up Its Renewable Energy Capacity"},"content":{"rendered":"\n<p><strong>Syllabus<\/strong><strong>: GS3\/Energy Infrastructure<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The mismatch between generation and consumption of electricity makes <strong>energy storage systems (ESS)<\/strong> indispensable for ensuring grid stability, reliability, and efficient utilization of renewable power.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Renewable Energy Capacity<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is rapidly expanding its renewable energy capacity to meet its climate commitments and energy security goals.<\/li>\n\n\n\n<li>Renewable energy sources account for nearly <strong>53% of India\u2019s installed power capacity (283 GW out of 532 GW)<\/strong>, with solar energy contributing more than <strong>150 GW<\/strong>.<\/li>\n\n\n\n<li>However, the increasing share of renewable energy brings a<strong> critical challenge i.e. intermittency<\/strong> <em>(a state of stopping and starting repeatedly, or operating at irregular intervals rather than continuously).<\/em><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Energy Storage?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Energy storage refers to technologies that capture excess electricity generated during periods of high renewable energy production and release it when demand exceeds supply.\n<ul class=\"wp-block-list\">\n<li>It acts as a buffer between electricity generation and consumption.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It helps balance supply and demand, reduce renewable energy curtailment, enhance grid reliability, support peak-load management, and facilitate round-the-clock renewable power supply.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Scenario<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pumped Hydro Storage: <\/strong>Global installed capacity stands at approximately <strong>160 GW<\/strong>.\n<ul class=\"wp-block-list\">\n<li><strong>Leading countries:<\/strong> China (~66 GW), Japan (~21.8 GW), and United States (~18.9 GW)<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Battery Energy Storage: <\/strong>Global battery storage capacity is estimated at around <strong>270 GW<\/strong>.\n<ul class=\"wp-block-list\">\n<li>According to the International Energy Agency (IEA), <strong>108 GW<\/strong> of new battery storage was added in 2025, representing a <strong>40% increase<\/strong> over 2024.<\/li>\n\n\n\n<li>China accounted for nearly <strong>60% of global additions<\/strong>, followed by the United States and Europe.<\/li>\n\n\n\n<li>Deployment is accelerating in Australia and the Middle East, where storage is increasingly viewed as essential for energy security and renewable integration.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Energy Storage Status<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Current Installed Capacity: <\/strong>BESS (~0.27 GW); PHS (~7.2 GW)<\/li>\n\n\n\n<li><strong>Central Electricity Authority (CEA) Projections for 2035-36: 174 GW \/ 888 GWh<\/strong> by 2035-36.\n<ul class=\"wp-block-list\">\n<li>BESS (80 GW \/ 321 GWh); PHS (94 GW \/ 567 GWh)<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Storage systems with <strong>4\u20136 hours duration<\/strong> will be crucial for integrating growing volumes of renewable energy beyond 2030.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Expansion Pipeline<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pumped Hydro Projects:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>13,120 MW<\/strong> under construction.<\/li>\n\n\n\n<li><strong>9,580 MW<\/strong> approved and awaiting construction.<\/li>\n\n\n\n<li>Nearly <strong>75,000 MW<\/strong> under survey and investigation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Battery Storage Projects:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>10,658.94 MW \/ 28,739.32 MWh<\/strong> under construction.<\/li>\n\n\n\n<li><strong>22,347.15 MW \/ 69,836.70 MWh<\/strong> under tendering.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Energy Storage Technologies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pumped Hydro Storage (PHS): <\/strong>It is the most mature and widely used large-scale storage technology globally.\n<ul class=\"wp-block-list\">\n<li><strong>Advantages: <\/strong>Suitable for long-duration storage, high reliability and long operational life, and large-scale energy storage capability.<\/li>\n\n\n\n<li><strong>Limitations: <\/strong>Requires specific geographical conditions, high initial capital investment, environmental and land acquisition concerns.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Battery Energy Storage Systems (BESS): <\/strong>It stores electricity in electrochemical form and releases it when required.\n<ul class=\"wp-block-list\">\n<li>Lithium-ion batteries, particularly <strong>Lithium Iron Phosphate (LFP)<\/strong> <strong>batteries<\/strong>, dominate the global market, and <strong>accounted for over 90% of global battery storage additions in 2025<\/strong>.<\/li>\n\n\n\n<li><strong>Advantages: <\/strong>Fast response time, modular deployment, and suitable for short-duration storage (4\u20136 hours).<\/li>\n\n\n\n<li><strong>Limitations: <\/strong>Dependence on critical minerals, battery degradation over time, and import dependence for cells and components.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other Emerging Storage Technologies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Concentrated Solar Thermal Storage: <\/strong>Uses mirrors and molten salts to store solar heat, which is later converted into electricity.<\/li>\n\n\n\n<li><strong>Compressed Air Energy Storage (CAES): <\/strong>Stores compressed air in underground caverns and releases it to drive turbines during peak demand.<\/li>\n\n\n\n<li><strong>Flywheel Energy Storage: <\/strong>Stores energy in rapidly spinning rotors and provides instant power support for grid stabilization.<\/li>\n\n\n\n<li><strong>Gravity-Based Storage: <\/strong>Stores energy by lifting heavy masses and generates electricity when they descend.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Energy Storage in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Import Dependence: <\/strong>About <strong>75\u201380% of lithium-ion cells used in India are imported<\/strong>, while cells account for nearly <strong>80% of a battery system\u2019s cost<\/strong>.\n<ul class=\"wp-block-list\">\n<li>It creates risks related to geopolitical tensions, supply-chain disruptions, trade restrictions, and price volatility.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>High Capital Costs: <\/strong>BESS requires substantial upfront investment. Although battery prices are declining globally, large-scale deployment remains expensive.<\/li>\n\n\n\n<li><strong>Limited Domestic Manufacturing: <\/strong>Domestic production of advanced battery cells and critical components remains inadequate.\n<ul class=\"wp-block-list\">\n<li>Reliance on imported technology affects self-reliance and cost competitiveness.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Critical Mineral Constraints: <\/strong>Lithium, cobalt, nickel, and graphite are essential for battery manufacturing.\n<ul class=\"wp-block-list\">\n<li>India has limited reserves of many of these minerals and depends on imports.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Land and Environmental Concerns: <\/strong>Pumped Hydro Storage Projects (PSPs) require large land areas and suitable topography.\n<ul class=\"wp-block-list\">\n<li>Environmental clearances, biodiversity concerns, and displacement issues can delay projects.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Long Gestation Period of PHS Projects: <\/strong>Pumped hydro projects involve extensive surveys, approvals, and construction timelines.\n<ul class=\"wp-block-list\">\n<li>Delays can affect the pace of renewable energy integration.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Grid Integration Challenges: <\/strong>Integrating storage systems into existing transmission and distribution networks requires significant upgrades.\n<ul class=\"wp-block-list\">\n<li>Operational and regulatory frameworks are still evolving.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Financing and Investment Risks: <\/strong>Uncertainty regarding revenue streams and market mechanisms can discourage private investment.\n<ul class=\"wp-block-list\">\n<li>Long payback periods increase financial risks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Battery Disposal and Recycling Issues: <\/strong>Large-scale deployment will generate significant battery waste in the future.\n<ul class=\"wp-block-list\">\n<li>India\u2019s battery recycling ecosystem is still developing.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Regulatory and Policy Gaps: <\/strong>Standardized regulations for storage procurement, pricing, and grid services are evolving.\n<ul class=\"wp-block-list\">\n<li>Policy uncertainty can slow investment and adoption.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Technological Dependence: <\/strong>Advanced battery technologies and manufacturing know-how are concentrated in a few countries.\n<ul class=\"wp-block-list\">\n<li>It limits India&#8217;s technological autonomy in the storage sector.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Growing Future Demand: <\/strong>Storage requirements are expected to rise sharply as renewable energy capacity expands.\n<ul class=\"wp-block-list\">\n<li>Scaling storage infrastructure at the required pace remains a major challenge.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Initiatives and Efforts to Promote Energy Storage in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Energy Storage Requirement Planning: CEA<\/strong> has projected a requirement of <strong>174 GW\/888 GWh<\/strong> of energy storage capacity by 2035-36.\n<ul class=\"wp-block-list\">\n<li>Provides a roadmap for integrating large-scale renewable energy into the grid.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Viability Gap Funding (VGF) for BESS: <\/strong>It aims to make projects financially viable, and to reduce storage costs and accelerate deployment.<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme for ACC Batteries: <\/strong>Supports domestic manufacturing of <strong>Advanced Chemistry Cells (ACC)<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Reduces dependence on imported battery cells and strengthens the domestic value chain.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Programme on Advanced Chemistry Cell (ACC) Battery Storage: <\/strong>Encourages indigenous manufacturing of next-generation battery technologies.\n<ul class=\"wp-block-list\">\n<li>Promotes technological self-reliance and energy security.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Development of Pumped Storage Projects (PSPs): <\/strong>Fast-tracking approval and construction of pumped hydro storage projects.\n<ul class=\"wp-block-list\">\n<li>Several projects are under construction, while many more are under survey and investigation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Renewable Energy Storage Obligation (ESO): <\/strong>Introduced by the Ministry of Power as part of Renewable Purchase Obligations (RPOs).\n<ul class=\"wp-block-list\">\n<li>Mandates designated entities to procure a certain share of electricity from energy storage-backed renewable sources.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Green Energy Corridor Programme: <\/strong>Strengthens transmission infrastructure for integrating renewable energy and storage systems.\n<ul class=\"wp-block-list\">\n<li>Facilitates efficient evacuation of renewable power across regions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Green Hydrogen Mission: <\/strong>Promotes green hydrogen production using renewable energy.\n<ul class=\"wp-block-list\">\n<li>Hydrogen can serve as a long-duration energy storage medium in the future.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>PM Surya Ghar: Muft Bijli Yojana: <\/strong>Encourages rooftop solar adoption and distributed energy resources.\n<ul class=\"wp-block-list\">\n<li>Creates opportunities for future integration of household-level battery storage systems.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Battery Waste Management Rules, 2022: <\/strong>Introduces <strong>Extended Producer Responsibility (EPR)<\/strong> for battery manufacturers.\n<ul class=\"wp-block-list\">\n<li>Promotes recycling, resource recovery, and sustainable battery disposal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Critical Minerals Strategy: <\/strong>India is securing overseas mineral assets and strengthening domestic exploration of lithium and other critical minerals.\n<ul class=\"wp-block-list\">\n<li>Supports long-term battery manufacturing and storage deployment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>International Cooperation: <\/strong>Participation in initiatives such as the <strong>International Solar Alliance (ISA)<\/strong> and partnerships for clean energy technologies.\n<ul class=\"wp-block-list\">\n<li>Facilitates technology transfer, investment, and best-practice sharing in energy storage.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Discuss the role of energy storage systems in integrating renewable energy into the power grid. Examine the challenges associated with scaling up energy storage capacity in India.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-sci-tech\/india-energy-storage-renewable-power-grid-explained-10681344\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2026\/06\/Daily-Editorial-Analysis-09-06-2026.pdf\"><strong>Download PDF<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 09 June, 2026<\/p>\n<p>The mismatch between generation and consumption of electricity makes energy storage systems (ESS) indispensable for ensuring grid stability, reliability, and efficient utilization of renewable power.<\/p>\n","protected":false},"author":15,"featured_media":76289,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-76285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/indias-renewable-energy-capacity.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/76285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=76285"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/76285\/revisions"}],"predecessor-version":[{"id":76292,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/76285\/revisions\/76292"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/76289"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=76285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=76285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=76285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}