India energy storage mandate is being planned for state power utilities by the government to help store surplus renewable electricity for evening peak demand. Power Secretary Pankaj Agarwal announced the proposed requirement at the Bharat Renewable Energy Summit, as the country seeks to reduce electricity shortages during evening and night-time hours when solar power generation drops while consumption remains high.
The upcoming mandate is designed to allow state utilities to store surplus clean electricity generated during the day and release it when demand peaks later. Government officials have not yet decided the exact capacity utilities will be required to install or provided a timeline for implementing the measure, noting that the situation is still evolving.
- India plans to make state power utilities install energy storage capacity to reduce evening and night-time power shortages.
- The Union Cabinet approved a ₹14,500-crore viability gap funding scheme to develop 92 GWh of grid-scale storage between FY27 and FY31.
- The International Energy Agency reported that India’s renewable capacity crossed 300 GW in 2026.
Why India Needs Energy Storage Mandates
The country’s power system faces a growing challenge as solar and wind generation expand while consumption remains high after sunset. Without adequate storage, surplus daytime electricity cannot be shifted to periods when solar generation is unavailable. This supply gap has increased pressure on conventional power sources, particularly coal-fired plants.
Government data reported by Reuters shows that electricity shortages reached 560 million kilowatt-hours in September, marking the highest level since August 2023. Meanwhile, coal-fired power generation rose 25.7 per cent year-on-year in October, recording its fastest annual increase in three years, while hydropower generation declined 26 per cent due to weaker rainfall.
Rs 14,500-Crore Push For Grid-Scale Storage
The proposed requirement follows the Union Cabinet’s approval of a ₹14,500-crore viability gap funding scheme to develop 92 gigawatt-hours of grid-scale energy storage capacity between FY27 and FY31. The programme will support 60 GWh of pumped hydro storage projects, 30 GWh of battery energy storage systems, and 2 GWh of emerging storage technologies, attracting a total investment of ₹97,600 crore.
Under this scheme, public and private sector electricity distribution companies will be eligible for financial support. The government has also introduced a minimum domestic content requirement of 40 per cent for battery energy storage projects to encourage local manufacturing and reduce dependence on imported components. Officials estimate this infrastructure will help India move towards its requirement of 411 GWh of grid-scale storage by 2031-32.
India Expands Renewable Energy Ambitions
The storage push forms part of a wider effort to strengthen electricity infrastructure as renewable power capacity expands towards a target of 500 GW of non-fossil fuel-based capacity by 2030. According to the International Energy Agency India Renewable Energy Market Report 2026 released on November 3, India’s renewable capacity crossed 300 GW in 2026, almost quadrupling over the past decade.
The country also achieved its goal of sourcing 50 per cent of installed power capacity from non-fossil fuel sources in 2025, five years ahead of schedule. The agency expects capacity to reach around 530 GW by 2030, with solar power accounting for over 80 per cent of new additions, while cautioning that the expansion will require faster investment in electricity grids, energy storage, and system flexibility.
Frequently Asked Questions
What is the goal of the India energy storage mandate?
The proposed India energy storage mandate aims to help state utilities store surplus renewable electricity during the day to supply evening peak demand, thereby reducing evening and night-time electricity shortages when solar generation drops.
What financial support has the government approved for storage?
The Union Cabinet approved a ₹14,500-crore viability gap funding scheme to develop 92 gigawatt-hours of grid-scale energy storage capacity between FY27 and FY31, supporting pumped hydro, battery storage, and emerging technologies.
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