47 GW from battery storage and 26.7 GW from pumped storage planned to manage growing power demand

India requires and will add 73.7 gigawatts (GW) of energy storage capacity by 2032, including 47 GW from Battery Energy Storage Systems (BESS) and 26.7 GW from Pumped Storage Projects (PSP), to help meet growing electricity demand and ensure reliable clean energy supply, said Manohar Lal Khattar, Minister of Power. He highlighted that, according to IAEA estimates, the world needs to increase its energy storage capacity sixfold by 2030 to meet clean energy targets.

Khattar said energy storage is critical for integrating more solar and wind power into the grid and supporting 24×7 electricity supply across sectors. “To meet our clean energy goals and support economic growth, we must scale up both battery and pumped storage. These technologies will help manage peak demand and improve grid stability,” the Power Minister said.

Supporting Renewable Growth
India’s total installed power generation capacity has reached 472 GW, with over half coming from non-fossil fuel sources. As renewable energy continues to grow, large-scale storage systems are needed to balance variable generation and maintain power reliability.

The Minister said the government is committed to supporting energy storage through policy incentives, including the Production Linked Incentive (PLI) scheme for battery manufacturing. “We are giving support through PLI and budgetary grants so that private companies can come forward and invest in storage,” he said.

Khattar said the government has already approved Rs 18,000 crore under the PLI scheme for advanced chemistry cell battery manufacturing. He also mentioned plans for an additional 100 GW of storage capacity through non-PLI investments.

He urged the private sector to invest in battery production, critical mineral processing, R&D, and skilled workforce development. “Without investment in the storage value chain, our clean energy targets will be hard to meet,” he added. “In the past three to four years, the cost of energy storage has significantly decreased. What was once Rs 10 lakh per megawatt has now fallen to Rs 2.5 lakh per megawatt per month, indicating a reduction to one-fourth of the original cost,” he said.

The Minister also highlighted the link between energy storage and green hydrogen. India’s National Green Hydrogen Mission, with an outlay of Rs 19,744 crore, aims to produce 10 million metric tonne of green hydrogen and build 60–100 GW of electrolyser capacity by 2030. This will help reduce the use of fossil fuels in industries such as steel, cement, fertilisers, and long-distance transport.

Khattar said countries like the United States and the European Union are rapidly increasing their storage capacities and integrating green hydrogen into their energy systems. He said India is also making strong progress and aims to lead the global clean energy transition. “India is not just catching up, we are moving ahead. Our energy market is not only a domestic opportunity but a global one,” Khattar said.