India has approved a USD 1.5 billion initiative to significantly expand its energy storage capacity, as the country seeks to reduce dependence on fossil fuels, strengthen energy security and accelerate its transition towards renewable energy.
The scheme, approved by Prime Minister Narendra Modi's government on November 4, will support the development of 92 gigawatt-hours (GWh) of energy storage capacity over five years, with an estimated USD 10 billion in investment expected from the public and private sectors.
According to the Indian government, the programme will run from the 2026–27 financial year until 2030–31, supporting 60 GWh of pumped hydropower storage, 30 GWh of battery storage and an additional 2 GWh through emerging energy storage technologies.
The planned expansion represents approximately 170 percent of India's existing grid-scale energy storage capacity.
Announcing the initiative, Modi said the investment would improve electricity reliability, facilitate greater integration of renewable energy into the national grid and strengthen India's long-term energy security.
The decision comes as India, the world's most populous country, faces growing electricity demand alongside increasing pressure to diversify its energy sources and reduce exposure to disruptions in international fuel markets.
Recent geopolitical tensions in the Middle East, including the conflict involving Iran, have highlighted the vulnerability of energy-importing economies to supply disruptions and fluctuations in global fuel prices.
India, one of the world's largest energy consumers, continues to depend heavily on coal for electricity generation despite substantial investments in solar, wind and hydropower projects.
The government has set a target of achieving 500 gigawatts of installed non-fossil fuel electricity capacity by 2030 and reaching net-zero carbon emissions by 2070.
By July 2026, non-fossil fuel sources accounted for more than half of India's total installed electricity generation capacity, reflecting the country's rapid expansion of renewable and nuclear energy infrastructure.
India's installed solar power capacity reached approximately 171 GW by September 2026, while its combined large and small hydropower capacity stood at around 57 GW.
However, the rapid growth of renewable energy has created new challenges for electricity management, particularly because solar and wind generation depend on weather conditions and do not always coincide with periods of peak demand.
Large-scale energy storage systems allow electricity generated during periods of high renewable production to be stored and supplied when demand increases, reducing the need to rely on conventional power plants.
The Indian government estimates that the country will require approximately 411 GWh of grid-scale storage capacity by 2031–32, including 236 GWh of battery storage and 175 GWh of pumped hydropower storage.
The newly approved programme is intended to help narrow this gap by providing financial assistance to make large-scale storage projects more commercially viable.
The initiative also seeks to strengthen domestic manufacturing and reduce reliance on imported battery components.
Under the scheme, battery energy storage projects will be required to meet a minimum domestic content requirement of 40 percent, encouraging the use of locally manufactured equipment and supporting India's industrial development.
In a related decision, the Indian government approved a separate USD 300 million programme to establish four domestic processing facilities for lithium and nickel, minerals essential for battery manufacturing, electric vehicles and energy storage technologies.
India currently relies heavily on imports of processed critical minerals, making domestic production a priority as the country expands its renewable energy infrastructure.
The expansion is expected to create investment opportunities across renewable energy, engineering, battery manufacturing and electricity infrastructure, while strengthening India's ability to maintain a stable power supply during periods of international energy market volatility.
For South Asian countries, including the Maldives, India's expanding investments in renewable energy and storage could offer relevant experience in addressing energy security challenges.
The Maldives remains heavily dependent on imported diesel for electricity generation, making its energy sector particularly vulnerable to international fuel price fluctuations and supply disruptions.
As the Maldives pursues its own renewable energy transition, developments in battery storage, solar integration and electricity grid management in neighbouring India could provide opportunities for technical cooperation and knowledge sharing.
India's latest investment reflects a broader regional shift towards strengthening energy independence, improving electricity reliability and reducing long-term dependence on imported fossil fuels. (Source: PM office, India and Khalij Times)
