The scheme backs pumped storage, battery and emerging storage projects with an estimated Rs 97,600 crore of investment to help integrate renewable energy into the grid.

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• The Union Cabinet approved a Viability Gap Funding scheme for grid-scale energy storage systems on November 4, 2026, with total support of Rs 14,500 crore.
• The scheme runs from 2026-27 to 2030-31 and targets about 92 GWh of storage capacity yet to be commissioned.
• Of the target, 60 GWh will be pumped storage projects, 30 GWh battery energy storage systems and 2 GWh emerging storage technologies.
• The projects are estimated to attract total investment of Rs 97,600 crore.
• Capacity will be allocated through tariff-based competitive bidding involving public and private sector players.
• Public and private sector power distribution companies are eligible for VGF support for battery and pumped storage projects.
• Battery projects must meet a minimum domestic content requirement of 40 per cent, to promote indigenous manufacturing.
• The funding is meant to improve project viability and speed up deployment of large-scale storage infrastructure.
• Storage helps manage electricity demand and integrate renewable energy into the power grid.
• The scheme helps India meet its 411 GWh energy storage target for 2031-32.
• It carries added significance given India's target of 500 GW of renewable energy capacity by 2030.

Tags: EnergyStorage, ViabilityGapFunding, PumpedStorage