Energy storage capacity added by India in first quarter, Pg10

Key Highlights:

• India added 4.6 gigawatt-hours (GWh) of battery energy storage capacity in the first quarter of 2026.
• This represents a significant 941% increase compared to the 442.7 megawatt-hours (MWh) added in the preceding October-December 2025 period.
• The country's cumulative installed battery energy storage capacity reached 5.9 GWh as of March 2026.
• Rajasthan leads in cumulative installed energy storage capacity, followed by Gujarat.
• This rapid expansion is crucial for integrating renewable energy and enhancing grid stability.

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Detailed Insights:

• The surge in battery energy storage is driven by India's ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030.
• Government initiatives like the Viability Gap Funding (VGF) Scheme provide financial support, offering up to 40% of the capital cost for battery energy storage projects.
• The Energy Storage Obligation (ESO) mandates electricity distributors to source a growing percentage of energy from renewable sources coupled with storage, aiming for 4% by FY 2029-30.
• The Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery manufacturing further boosts domestic production capacity.
• The National Framework for Promoting Energy Storage Systems, unveiled in August 2023, aims to ensure round-the-clock availability of renewable energy and improve grid stability.
• Standalone energy storage systems constitute a major portion, accounting for 73% of the cumulative capacity.
• India's energy storage development pipeline reached 69 GWh in Q1 2026, indicating robust future growth.
• The Central Electricity Authority (CEA) estimates a demand for 73.93 GW/411.4 GWh of energy storage by 2031-32.
• Waiver of Inter-State Transmission System (ISTS) charges for battery energy storage projects also incentivizes development.

Key Concepts Involved:

• Battery Energy Storage Systems (BESS): Technologies that store electrical energy in rechargeable batteries for later use, crucial for grid stability and renewable energy integration.
• Gigawatt-hour (GWh): A unit of energy representing one billion watt-hours, commonly used to measure the capacity of large-scale energy storage systems.
• Viability Gap Funding (VGF) Scheme: A government financial mechanism to support infrastructure projects that are economically justified but not financially viable due to high capital costs.
• Energy Storage Obligation (ESO): A regulatory mandate requiring electricity distribution companies and other obligated entities to procure a specified minimum percentage of their energy from renewable sources backed by energy storage.