As per the National Electricity Plan (Generation) Gazette notified in May, 2023, the projected Battery Energy Storage System (BESS) installed capacity requirement by the year 2026-27 and 2031-32 are 8.68Giga Watt (GW) / 34 Giga Watt hour (GWh) and 47.24GW /236 GWh respectively with an estimated investment of about Rs 3.49 lakh Crores by 2031-32.
The projected Pumped Storage Plant (PSP) installed capacity requirement by the year 2026-27 and 2031-32 are 7.45 GW / 47 GWh and 26.69 GW/ 175 GWh respectively with an estimated investment of about Rs 1.29 lakh Crores by 2031-32.
NITI Aayog in its report titled Sectoral Insights: Power (Vol. 7) released in February, 2026, has mentioned that Energy storage is going to emerge a critical requirement for managing the variability associated with RE integration. The government has already undertaken a series of coordinated policy, regulatory, demand-side, and supply-side measures to promote the development and deployment of Energy Storage Systems (ESS), including BESS.
