India launches $1.5 billion energy storage plan

India has launched a $1.5-billion scheme to develop 92 gigawatt-hours of energy storage capacity as it seeks to accelerate its shift towards renewable energy, the government said Wednesday.

India is the third-biggest emitter of greenhouse gases and remains deeply dependent on polluting coal to meet its soaring energy demand. Energy demand in India, home to more than 1.4 billion people, is expected to continue rising rapidly even as the government pursues its goal of achieving net-zero emissions by 2070.

The scheme, which runs from 2026-27 to 2030-31, will support 60 gigawatt-hours of pumped hydro storage, 30 GWh of battery storage, and two GWh using emerging technologies, the government said. New Delhi's incentives would support an estimated $10 billion of investment in the next five years, it added, with the planned additions equivalent to 170 percent of India's existing grid-scale energy storage capacity.

Prime Minister Narendra Modi said the scheme would help deliver "more reliable power, greater renewable energy integration, and stronger energy security". India's cabinet Wednesday also approved a $300 million scheme to support four domestic processing plants for lithium and nickel, critical minerals used in electric vehicle batteries, energy storage systems, and electronics.

"At present, India remains substantially dependent on imports," the cabinet said in a statement. "Domestic processing capacity is therefore imperative."

Agence France-Presse