NEW DELHI, October 12 — The Union Ministry of Power on Monday officially notified the comprehensive National Framework for Promoting Energy Storage Systems (ESS), setting into motion enforceable regulatory mechanisms and viability funding to integrate 500 gigawatts (GW) of intermittent non-fossil generation capacity into India's national power grid.
Under the notified policy mandates, state electricity distribution companies (Discoms) must adhere to a graduated Energy Storage Obligation (ESO) trajectory, scaling to 4.0 percent of total annual electrical energy procurements derived exclusively from Battery Energy Storage Systems (BESS) or Pumped Storage Hydro Projects (PSPs) by FY 2029-30. The operational blueprint integrates the ₹9,400 crore Viability Gap Funding (VGF) scheme approved by the Union Cabinet, which finances up to 40 percent of the initial capital outlay for 4,000 megawatt-hours (MWh) of grid-scale battery installations.
The framework further waives Inter-State Transmission System (ISTS) wheeling charges for standalone ESS assets commissioned prior to June 2028, accords infrastructure asset status to storage developers, and establishes regulatory architectures for dynamic frequency regulation and ancillary grid ancillary services managed by the Grid Controller of India.
The statutory architecture under the Electricity Act 2003, National Electricity Policy mandates, Central Electricity Authority (CEA) long-term capacity projections (targeting 47 GW / 236 GWh of total storage by 2030), electro-chemical storage chemistries (Lithium Iron Phosphate versus emerging Sodium-ion batteries), and green grid integration are vital syllabus topics across UPSC Civil Services (GS-III: Infrastructure & Energy Security) and engineering recruitment examinations.