Nodal agency: Ministry of Power

Policy brief

The Ministry of Power has proposed measures to stimulate deployment of energy storage systems.

Key highlights

Storage capacity requirement Renewable projects (excluding hydro) with capacity over 5 MW required to install storage capacity equivalent to minimum 5% of renewable power capacity with minimum one-hour duration


  1. VGF up to 40% of capital cost for battery storage projects commissioned within 24 months
  2. Carbon credit issuance for storage systems utilising renewable energy
  3. Connectivity to ISTS network on priority basis
  4. ED and CSS waiver on input power
  5. Exemption from stamp duty and registration fees on acquired land; government land may be leased at concessional rate

Other proposals

  1. PLI and ALMM schemes for battery storage systems
  2. Long-term financing from PFC, REC and IREDA





Policy documents