India launches US$1.5bil energy storage plan

India has unveiled a $1.5 billion initiative to develop 92 gigawatt-hours of energy storage capacity, aiming to expedite its transition to renewable energy sources, according to the government. The initiative, set to run from 2026-27 to 2030-31, will support 60 gigawatt-hours of pumped hydro storage, 30 gigawatt-hours of battery storage, and two gigawatt-hours through emerging technologies.

The government claims that the scheme will generate about $10 billion in investments over the next five years, equivalent to 170 percent of India's current grid-scale energy storage capacity.

India, home to over 1.4 billion people, is the third-largest emitter of greenhouse gases and continues to rely heavily on coal for its burgeoning energy needs. Despite the government's goal of achieving net-zero emissions by 2070, power generation in the country is projected to surge further. Prime Minister Narendra Modi announced that the scheme will promote more dependable power, better integration of renewable energy, and enhanced energy security.

In a related move, India's cabinet approved a $300 million scheme to bolster domestic processing plants for lithium and nickel, vital minerals for electric vehicle batteries, energy storage systems, and electronics. Currently, India is heavily dependent on imports for these critical minerals, making the domestic processing capacity crucial for the nation's energy transition.