Stories
India Boosts Green Energy with Major Battery Storage Funding Push
- •India plans to offer financial support to battery storage projects using locally made components under the Green Energy Corridor programme (GEC-3) to manage increased renewable power.
- •The GEC-3 scheme will provide viability gap funding for battery storage systems that meet requirements for using Indian-made components, with guidelines expected within two months.
- •India's battery storage capacity is significantly smaller than China's (9 GWh vs. 400 GWh as of June 2026), with tenders already issued for 45 GWh and another 50 GWh planned through GEC-3.
- •Battery storage is crucial for India to manage intermittent renewable energy sources like solar and wind, ensuring grid stability and efficient power distribution.
- •The government will increase monitoring of Green Energy Corridor projects, with GEC-1 nearing completion and GEC-2 projects brought under Cabinet Secretary supervision, covering 13 states.
Key Questions Answered
The third phase of the Green Energy Corridor programme (GEC-3), approved by the Union Cabinet, will provide viability gap funding to battery storage systems that utilize locally made components. This initiative aims to build necessary storage capacity, encourage domestic battery manufacturing, and support the integration of expanding renewable power.
As of June 2026, India had approximately 9 GWh of battery storage capacity, whereas China possessed about 400 GWh. To address this gap, the Indian Power Ministry has issued tenders for 45 GWh, with another 50 GWh to be added through the GEC-3 scheme.
India is rapidly deploying solar and wind energy, but these intermittent sources do not generate power at a constant rate, leading to supply gluts during peak hours and shortfalls after sunset. Battery storage captures surplus electricity when generation is high and releases it when demand rises, helping stabilize the electricity grid and handle higher shares of renewable energy.
