India has approved a $1.5 billion plan to support 92 GWh of energy storage capacity. According to Sina Finance, Information Minister Ashwini Vaishnaw said Wednesday in New Delhi that the subsidy is intended to improve use of the country’s rapidly expanding renewable energy generation facilities and transmission network. The 145 billion rupee support program will run through 2031 and aims to help companies begin operations in the emerging storage market.

India currently has about 54 GWh of storage capacity, and the government aims to reach 411 GWh by fiscal 2031-32. The decision addresses a structural challenge in the country’s energy transition: new solar and wind capacity has exceeded the grid’s ability to absorb it. Since 2017, installed solar and wind capacity has quadrupled to about 230 GW, or 41% of total installed capacity. India has also invested billions of dollars in transmission lines to move renewable electricity across the country.

However, much of this infrastructure cannot be used at full capacity around the clock. Solar plants stop generating after sunset, while the grid struggles to absorb all available power when solar generation peaks during the day.