India launches US$1.5bil energy storage plan

India has initiated a US$1.5-billion initiative to develop 92 gigawatt-hours of energy storage capacity, aiming to accelerate its transition towards renewable energy, announced the government on Wednesday. Despite India's commitment to achieve net-zero emissions by 2070 and being the third-largest emitter of greenhouse gases, the nation continues to heavily rely on coal for its burgeoning energy needs.

The government's plan, spanning from 2026-27 to 2030-31, will support 60 GWh of pumped hydro storage, 30 GWh of battery storage, and two GWh utilizing novel technologies.

Incentives under this scheme are expected to stimulate approximately $10 billion in investments over the next five years, with the proposed expansions amounting to 170 percent of India's current grid-scale energy storage capacity. Prime Minister Narendra Modi emphasized that the scheme would enhance power reliability, facilitate greater integration of renewable energy, and bolster energy security.

Additionally, India's cabinet approved a $300 million scheme to bolster four domestic processing plants for lithium and nickel, essential minerals utilized in electric vehicle batteries, energy storage systems, and electronics. Currently, India remains highly dependent on imports, and the cabinet stated that establishing domestic processing capabilities is crucial.