Centre Expands Battery Energy Storage Push; Nil Capacity Reported for J&K

Ziraat Times Team Report

New Delhi, March 30: The Government of India has accelerated efforts to deploy large-scale Battery Energy Storage Systems (BESS) to support renewable energy expansion, but official data shows nil existing BESS capacity in Jammu & Kashmir, according to information presented in Parliament.

The Ministry of Power said the country aims to achieve 500 GW of installed electricity generation capacity from non-fossil fuel sources by 2030, with a significant share coming from solar and wind power. Because these renewable sources are intermittent and variable, energy storage systems are considered essential to store surplus electricity during periods of high generation and supply it later to ensure reliable 24×7 power.

As per the National Electricity Plan (2023) prepared by the Central Electricity Authority, India will require 208 GWh of Battery Energy Storage Systems by 2030 to support seamless integration of renewable energy into the national grid. In addition, about 35.8 GWh of BESS capacity is currently under construction across the country.

State-wise capacity shows gaps including J&K

Data provided by the ministry shows that several states and union territories have begun installing battery storage projects of more than 1 MWh capacity. However, Jammu & Kashmir has no reported BESS capacity so far.

The existing installations are distributed across regions including:

• Bihar – 282 MWh

• Karnataka – 150 MWh

• Chhattisgarh – 120 MWh

• Rajasthan – 100 MWh

• Gujarat – 77 MWh

• Delhi – 50 MWh

• Uttar Pradesh – 3 MWh

• West Bengal – 6 MWh

• Andaman & Nicobar – 8 MWh

• Lakshadweep – 1 MWh

The total installed BESS capacity currently stands at 798 MWh nationwide.

Policy push to scale up storage

The government has introduced a range of policy, regulatory and financial measures to accelerate energy storage deployment. These include recognition of Energy Storage Systems as an integral part of the power system under amended electricity rules, inclusion of ESS in the infrastructure master list to enable cheaper financing, and issuance of a national framework to guide large-scale deployment.

Additional measures include:

• Waiver of inter-state transmission charges for certain co-located BESS projects commissioned by June 2028.

• Competitive bidding guidelines for procurement of battery storage by distribution companies.

• Allowing storage systems to participate in ancillary services and power markets.

• Two Viability Gap Funding schemes aimed at supporting around 43 GWh of BESS development.

Manufacturing and supply ecosystem

On the manufacturing side, the government is implementing a Production-Linked Incentive (PLI) scheme worth ₹18,100 crore to establish 50 GWh of Advanced Chemistry Cell manufacturing capacity, with 10 GWh reserved for grid-scale storage. Policy changes have also allowed consumers to develop, own, lease or operate energy storage systems, expanding possible business models.

Officials said these steps are intended to strengthen grid reliability, support renewable energy growth and enable storage to provide services such as frequency regulation, voltage control and emergency grid restoration.

The information was provided in a written reply in the Rajya Sabha by Minister of State for Power Shripad Naik.