The Indian government has unveiled a new framework to promote joint ventures (JVs) in the renewable energy storage sector, aiming to accelerate the transition toward a sustainable, low-carbon energy system. Spearheaded by the Ministry of New and Renewable Energy (MNRE) in collaboration with the Ministry of Power and NITI Aayog, this framework seeks to attract domestic and foreign investments into the development of battery energy storage systems (BESS), green hydrogen storage, pumped hydro, and thermal energy storage solutions. The objective is to support grid stability, enhance renewable energy integration, and reduce dependency on fossil fuels.

Under the new policy, JVs are encouraged to set up large-scale energy storage parks, grid-connected storage units, and off-grid backup systems. The government offers a wide range of incentives, including production-linked incentives (PLI) for advanced chemistry cell manufacturing, viability gap funding (VGF), priority grid access, and land allocation support. The framework also allows 100% foreign direct investment (FDI) under the automatic route in the renewable energy storage sector, making it easier for international technology firms and energy developers to collaborate with Indian partners.

The policy gives preference to JVs that promote technology transfer, R&D collaborations, and domestic value chain creation, especially in lithium-ion, flow batteries, and hydrogen-based storage technologies. JVs focused on scalable, sustainable, and recyclable solutions are prioritized for public procurement and grid-level storage tenders. By supporting joint ventures, the government aims to establish India as a global hub for energy storage innovation and manufacturing, while ensuring a reliable, 24×7 renewable power supply to meet the country’s ambitious net-zero emissions targets.