**Executive Summary**
To achieve a target of 500 GW of non-fossil fuel electricity capacity by 2030, the Government of India is implementing a comprehensive strategy to deploy 208 GWh of Battery Energy Storage Systems (BESS). Key initiatives include a waiver of Inter-State Transmission System (ISTS) charges for co-located projects commissioned by June 2028 and the rollout of Viability Gap Funding (VGF) for 43 GWh of storage. These measures aim to integrate intermittent renewable energy, ensure grid stability, and provide 24x7 power supply through enhanced regulatory and financial frameworks.
**Key Points / Main Content**
**Policy and Regulatory Framework**
* **Legal Recognition:** The Electricity Rules were amended in December 2022 to recognize Energy Storage Systems (ESS) as an integral part of power generation, transmission, and distribution.
* **Infrastructure Status:** ESS was added to the Harmonised Master List of Infrastructure in October 2022, enabling access to low-cost, long-tenure financing.
* **Planning and Standards:** Guidelines issued in June 2023 mandate State utilities to include energy storage in Resource Adequacy Plans. Additionally, draft technical and safety regulations for BESS construction were introduced in 2025.
**Market Development and Incentives**
* **Financial Support:** The government is implementing VGF schemes for approximately 43 GWh of BESS and has provided an ISTS charge waiver for co-located projects until June 2028.
* **Market Integration:** BESS can participate in the High-Price Day-Ahead Market and provide ancillary services such as frequency regulation and voltage control.
* **Procurement Mechanisms:** Tariff-Based Competitive Bidding (TBCB) guidelines were notified in March 2022 to create a transparent procurement process for distribution licensees.
**Supply-Side and Manufacturing Initiatives**
* **PLI Scheme:** A ₹18,100 crore Production-Linked Incentive (PLI) scheme is underway to establish 50 GWh of Advanced Chemistry Cell manufacturing, with 10 GWh dedicated to grid-scale storage.
* **Co-location Requirements:** A February 2025 CEA advisory recommends that solar projects include storage capacity of at least 10% of the installed solar capacity for a minimum of two hours.
* **Connectivity:** Separate grid connectivity is permitted during non-solar hours to facilitate shifting renewable power to evening and night peak periods.
**Current Capacity Status**
* **Existing Capacity:** There is currently 798 MWh of BESS capacity (for projects >1 MWh) across various states, with Bihar (282 MWh) and Karnataka (150 MWh) leading.
* **Pipeline:** Approximately 35.8 GWh of BESS capacity is currently under construction.
**Impact Analysis**
**Renewable Energy Developers**
**Impact**
Developers must now account for storage to manage the intermittency of solar and wind energy and improve dispatchability.
**Action Required**
Adhere to CEA advisories by integrating storage capacity of at least 10% for new solar projects and utilize ISTS waivers before the June 2028 deadline.
**Distribution Licensees (DISCOMs)**
**Impact**
DISCOMs are required to use BESS as a key resource for meeting peak demand and ensuring system reliability.
**Action Required**
Incorporate energy storage into Resource Adequacy Plans and use Tariff-Based Competitive Bidding for large-scale storage procurement.
**Industrial and Commercial Consumers**
**Impact**
Consumers using diesel generator sets are legally required to transition to cleaner backup power solutions.
**Action Required**
Shift from diesel generators to energy storage or other clean solutions within timelines specified by State Commissions.
**Battery Manufacturers**
**Impact**
The sector receives significant financial backing to localize the production of advanced battery cells.
**Action Required**
Leverage the ₹18,100 crore PLI scheme to establish manufacturing facilities for Advanced Chemistry Cells.
Key Entities Referenced
Electricity Rules: Amended to explicitly recognize Energy Storage Systems (ESS) as an integral part of the power system across generation, transmission, and distribution.
National Framework for Promotion of Energy Storage Systems: A policy roadmap providing a comprehensive strategy for the deployment, market integration, and regulatory facilitation of storage technologies.
PLI Scheme for Advanced Chemistry Cell (ACC): A manufacturing incentive scheme with an ₹18,100 crore outlay to establish 50 GWh of battery capacity, targeting grid-scale storage.
Viability Gap Funding (VGF) schemes for BESS: Financial support initiatives implemented to accelerate the early-stage deployment of approximately 43 GWh of Battery Energy Storage Systems.
Central Electricity Authority (CEA): The technical regulator that projects national storage requirements and issues safety, technical, and construction standards for BESS.
Ministry of Power
DEVELOPMENT OF BATTERY ENERGY
STORAGE SYSTEMS
Posted On: 30 MAR 2026 4:16PM by PIB Delhi
The Government of India has set a target of achieving 500 GW of installed electricity generation capacity
from non-fossil fuel-based sources by 2030, with a major share expected from solar and wind energy,
which are inherently intermittent and variable in nature.
To facilitate the integration of such variable and intermittent Renewable Energy (RE) sources, deployment
of Energy Storage Systems (ESS) is essential for storing surplus energy during periods of high RE
generation to ensure 24x7 electricity supply. ESS can also provide critical ancillary services, including
frequency regulation, voltage control, and black start capability. As per the National Electricity Plan
(2023) published by the Central Electricity Authority (CEA), a requirement of 208 GWh of Battery
Energy Storage Systems (BESS) has been projected by 2030 to enable seamless integration of the
increasing share of renewable energy in the grid.
To support this energy transition, the Government of India has undertaken a series of coordinated policy,
regulatory, demand-side, and supply-side measures to promote the development and deployment of energy
storage technologies, including BESS. The details of these measures are provided in the Annexure-I.
As per the data available with the Ministry, the State/UT wise existing BESS capacity (for projects above
1 MWh) is provided in Annexure-II. Further, 35.8 GWh of BESS capacity is under construction.
ANNEXURE-I
I. Policy and Regulatory Measures
1. The Electricity Rules were amended in December 2022 to explicitly recognise Energy Storage
Systems (ESS) as an integral part of the power system, enabling their participation across
generation, transmission and distribution functions.
2. In October 2022, ESS were included in the Harmonised Master List of Infrastructure of the Ministry
of Finance, facilitating access to long-tenure and lower-cost financing.
3. In June 2023, the Government issued Guidelines for Preparation of Resource Adequacy Plans by
State utilities, under which energy storage has been incorporated as a key planning resource for
meeting peak demand and ensuring system reliability.
4. A National Framework for Promotion of Energy Storage Systems was issued in September 2023,
providing a comprehensive roadmap for deployment, market integration and regulatory facilitation
of storage technologies.5. To enhance safety and reliability of BESS installations and standardise design and construction
practices, Draft CEA (Measures Relating to Safety and Electric Supply) (First Amendment)
Regulations, 2025 and Draft Technical Standards for Construction of BESS Regulations, 2025 have
been issued.
II. Demand-Side Enablers and Market Development Measures
6. Waiver of Inter-State Transmission System (ISTS) charges has been provided for co-located BESS
projects commissioned up to June 2028, to improve project viability.
7. In January 2022, CERC allowed storage-based resources to provide ancillary services, including
secondary and tertiary reserves, enabling ESS to support real-time grid balancing alongside
conventional generators.
8. Tariff-Based Competitive Bidding (TBCB) Guidelines for procurement of BESS by distribution
licensees were notified in March 2022, creating a transparent mechanism for large-scale storage
procurement.
9. Under the Electricity (Rights of Consumers) Rules, 2020, amended in December 2022, consumers
using diesel generator sets have been mandated to shift to cleaner backup solutions, including
energy storage, within timelines specified by State Commissions.
10. Electricity supplied from BESS has been allowed to participate in the High-Price Day-Ahead
Market, launched in March 2023, enabling storage to respond to peak price signals similar to gas-
based generation.
11. The Government is implementing two Viability Gap Funding (VGF) schemes to support
development of approximately 43 GWh of Battery Energy Storage Systems, launched in March
2024 and June 2025, to accelerate early-stage deployment.
III. Supply-Side and Manufacturing-Focused Measures
12. The Ministry of Heavy Industries is implementing a Production-Linked Incentive (PLI) Scheme
with an outlay of ₹18,100 crore for establishing 50 GWh of Advanced Chemistry Cell
manufacturing capacity, of which 10 GWh is earmarked for grid-scale storage.
13. CERC has allowed separate grid connectivity during non-solar hours, enabling additional renewable
capacity at existing substations and facilitating storage-based shifting of power to evening and night
hours.
14. Through amendment of the Electricity Rules in September 2025, energy storage systems have been
permitted to be developed, owned, leased or operated by consumers, expanding the range of
ownership and business models.
15. In February 2025, CEA issued an advisory on co-location of ESS with solar power projects,
recommending storage capacity of at least 10% of installed solar capacity for a minimum duration
of two hours, to improve dispatchability of solar power.
ANNEXURE-II
Details of Battery Energy Storage Systems State/UT wise (>1 MWh capacity)State/UT Capacity (in MWh)
Andaman & Nicobar 08
Bihar 282
Chhattisgarh 120
Delhi 50
Gujarat 77
Karnataka 150
Lakshadweep 01
Rajasthan 100
Uttar Pradesh 03
West Bengal 06
Total 798
This information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a
written reply in the Rajya Sabha today.
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NR/AP/MD
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