Lok Sabha Question No. 3093 (UNSTARRED), answered on 2025-12-18
Subject: Battery Energy Storage System
Ministry: POWER
Asked by: Shri Ganesh Singh

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3093 ANSWERED ON 18.12.2025

## BATTERY ENERGY STORAGE SYSTEM

†3093. SHRI GANESH SINGH:

Will the Minister of POWER be pleased to state:

- (a) the concrete steps that have been taken by the Government so far to develop and deploy energy-storage technology to handle the intermittency of renewable energy and maintain grid stability;
- (b) whether the Government is contemplating adopting best practices from countries with  high  renewable-energy  share  such  as  Battery  Energy  Storage  Systems  (BESS), pumped-hydro  storage  and  advanced  grid-management  systems  in  India's  energytransition strategy, if so, the details thereof; and
- (c) whether any proposal exists to release a national action-plan or roadmap to increase energy-storage capacity, reduce costs and deploy large-scale storage infrastructure in the upcoming years, if so, the details thereof?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

- (a) : To address the intermittency of renewable energy and to maintain grid stability, the Government of India has taken a series of coordinated policy, regulatory, demandside and supply-side measures to promote the development and deployment of energystorage technologies, including Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs).  Details of the measures taken are placed in the Annexure.

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- (b) : The Government is drawing upon global best practices from countries with high renewable-energy penetration as part of India's energy-transition strategy. International  experience  demonstrates  that  Pumped-hydro  storage  and  BESS,  and advanced  grid-management  systems  play  a  critical  role  in  managing  variability  and intermittency  of  renewable  energy.    In  line  with  these  practices,  energy  storage systems  in  India  are  being  positioned  to  provide  ancillary  grid  services  such  as frequency control, voltage regulation, peak shifting, congestion management and blackstart support across different time scales.  Accordingly, under the Central Electricity Regulatory Commission (Ancillary Services) Regulations, 2022, energy storage systems have been made eligible to provide Secondary Reserve Ancillary Services and Tertiary Reserve Ancillary Services, subject to specified conditions, thereby supporting realtime  grid  stability  and  reliable  system  operation.  Renewable  Energy  Management Centres (REMCs) have been established for monitoring, forecasting and scheduling of Renewable resources. Automatic Generation Control (AGC) is being used for balancing supply and demand to manage variability of renewable energy.

(c) : Government  has  put  in  place  a  planning  framework  to  guide  large-scale deployment of energy storage capacity in the coming years.  The Central Electricity Authority  (CEA)  has  estimated  a  requirement  of  about  336  GWh  of  energy  storage capacity by 2029-30 and about 411 GWh by 2031-32 to facilitate reliable integration of renewable energy.    Further,  Guidelines  for  Preparation  of  Resource  Adequacy  Plans (RAP)  were  issued  on  28.06.2023,  which  incorporate  energy  storage  systems  as  an important element of power sector planning.  These guidelines establish a mechanism to  ensure  that  adequate  generation,  storage  and  demand-responsive  resources  are available to reliably meet expected peak demand and maintain grid stability.  Together, the National Electricity Plan and Resource Adequacy framework provide a roadmap for scaling up energy-storage capacity, improving system reliability and enabling India's energy transition.

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## ANNEXURE

## ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 3093 ANSWERED IN THE LOK SABHA ON 18.12.2025

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- I. Policy and Regulatory Measures
1. The Electricity Rules were amended in December 2022 to explicitly recognise Energy Storage Systems (ESS) as an integral part of the power system, enabling their participation across generation, transmission and distribution functions.
2. In  October  2022,  ESS  were  included  in the Harmonised  Master  List  of Infrastructure of the Ministry of Finance, facilitating access to long-tenure and lower-cost financing.
3. In  June  2023,  the  Government  issued  Guidelines  for  Preparation  of  Resource Adequacy  Plans  by  State  utilities,  under  which  energy  storage  has  been incorporated as a key planning resource for meeting peak demand and ensuring system reliability.
4. A National Framework for Promotion of Energy Storage Systems was issued in September 2023, providing a comprehensive roadmap for deployment, market integration and regulatory facilitation of storage technologies.
5. To enhance safety and reliability of BESS installations and standardise design and construction practices, Draft CEA (Measures Relating to Safety and Electric Supply) (First Amendment) Regulations, 2025 and Draft Technical Standards for Construction of BESS Regulations, 2025 have been issued.
- II. Demand-Side Enablers and Market Development Measures
6. Waiver of Inter-State Transmission System (ISTS) charges has been provided for co-located BESS projects commissioned and PSPs awarded up to June 2028, to improve project viability (initial waiver was notified in November 2021).
7. In  January  2022,  CERC  allowed  storage-based  resources  to  provide  ancillary services, including secondary and tertiary reserves, enabling ESS to support realtime grid balancing alongside conventional generators.
8. Tariff-Based Competitive Bidding (TBCB) Guidelines for procurement of BESS by distribution  licensees  were  notified  in  March  2022,  creating  a  transparent mechanism for large-scale storage procurement.
9. Under the Electricity (Rights of Consumers) Rules, 2020, amended in December 2022,  consumers  using  diesel  generator  sets  have  been  mandated  to  shift  to cleaner backup solutions, including energy storage, within timelines specified by State Commissions.
10. Electricity supplied from BESS has been allowed to participate in the High-Price Day-Ahead Market, launched in March 2023, enabling storage to respond to peak price signals similar to gas-based generation.

………2.

11. The Government is implementing two Viability Gap Funding (VGF) schemes to support  development  of  approximately  43  GWh  of  Battery  Energy  Storage Systems,  launched  in  March  2024  and  June  2025,  to  accelerate  early-stage deployment.

## III. Supply-Side and Manufacturing-Focused Measures

12. The Ministry of Heavy Industries is implementing a Production-Linked Incentive (PLI)  Scheme  with  an  outlay  of  ₹18,100  crore  for  establishing  50  GWh  of Advanced Chemistry Cell manufacturing capacity, of which 10 GWh is earmarked for grid-scale storage (June 2021).
13. For pumped storage projects, a grant for enabling infrastructure is provided at the rate of ₹1 crore per MW for the first 200 MW and ₹0.75 crore per MW thereafter (September 2023).
14. CERC has allowed separate grid connectivity during non-solar hours, enabling additional renewable capacity at existing substations and facilitating storagebased shifting of power to evening and night hours (September 2025).
15. Statutory concurrence of the Central Electricity Authority has been dispensed with  for  closed-loop,  off-stream  pumped  storage  projects  to  expedite  project development (August 2025).
16. Through amendment of the Electricity Rules in September 2025, energy storage systems have been permitted to be developed, owned, leased or operated by consumers, expanding the range of ownership and business models.
17. In February 2025, CEA issued an advisory on co-location of ESS with solar power projects,  recommending  storage  capacity  of  at  least  10%  of  installed  solar capacity for a minimum duration of two hours, to improve dispatchability of solar power.

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