‘No Storage, No Transition’: Experts Seek Budget Push For Battery Storage, Critical Minerals

Last Updated:January 29, 2026, 18:45 IST

Ahead of the Union Budget 2026, experts are urging the government to significantly scale up funding for Battery Energy Storage Systems (BESS) and critical minerals.

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As India races towards its goal of installing more than 500 GW of non-fossil fuel capacity by 2030, energy and climate experts have warned that the transition could falter without a strong focus on storage.

Ahead of the Union Budget 2026, they are urging the government to significantly scale up funding for Battery Energy Storage Systems (BESS) and critical minerals to ensure grid stability and energy security.

Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget this Sunday.

While renewable energy and energy security have featured prominently in recent budgets, aligned with India’s commitments under the 2015 Paris Agreement, experts say the next phase of the transition requires sharper focus on storage, grids and supply chains.

Saurabh Kumar, Vice President at the Global Energy Alliance for People and Planet (GEAPP), said India has made notable progress in expanding renewable capacity but must now bridge key gaps.

“Without adequate battery storage, the power system cannot reliably absorb large volumes of renewable energy. Budgetary allocations should prioritise Battery Energy Storage Systems to stabilise the grid, along with support for decentralised renewable energy to deepen and broaden the transition," he said.

India has already met 50 per cent of its installed electricity capacity from non-fossil sources, five years ahead of its 2030 target. However, experts caution that sustaining this momentum will require continued policy and financial backing. Aarti Khosla, Founder-Director of Climate Trends, said the Budget should reinforce India’s clean energy push.

“Focused policies for grid modernisation and green manufacturing can further strengthen the country’s renewable energy ecosystem," she said.

Policy analysts also stressed the importance of sustained funding for energy storage and the National Critical Minerals Mission. Vibhuti Garg, Director (South Asia) at the Institute for Energy Economics and Financial Analysis (IEEFA), said long-term clarity is essential.

“Budgetary support must send a clear signal that these initiatives are structural and enduring, not short-term incentives. That confidence is crucial for attracting investment and achieving India’s 2030 renewable energy targets," she said.

Air Pollution And Climate Risks In Focus

Beyond power generation, experts flagged the urgent need to address air pollution, which continues to choke major cities, including Delhi. There are growing calls for stronger fiscal support to accelerate the electrification of transport—particularly commercial segments such as buses, trucks and other heavy-duty vehicles.

“Targeted incentives, viability gap funding and support for charging and hydrogen infrastructure can rapidly scale adoption in these segments, delivering both climate and public health benefits," Garg added.

As climate change intensifies, India is also witnessing a rise in extreme weather events, with mounting social and economic costs. Experts have called for a dedicated push to scale up adaptation finance and invest in urban resilience.

“Low-income and climate-vulnerable communities need urgent financial support and access to effective adaptation solutions to cope with escalating risks," said Santosh Singh, Managing Director and Partner, Climate and Energy at Intellecap.

Environmental groups have also raised concerns around waste management and recycling. The Centre for Science and Environment (CSE) recently wrote to the Finance Minister seeking GST relief on recyclable waste.

“The current GST structure is pushing transactions into the informal sector while undermining recycling, resource security and industrial competitiveness," said Parth Kumar, Programme Manager at CSE’s Sustainable Industrialisation Unit.

Critical Minerals: No Longer Optional

Experts emphasised that critical minerals have become central to India’s clean energy ambitions. Saloni Sachdeva Michael, Energy Specialist at IEEFA, said India’s dependence on imports highlights growing supply-chain vulnerabilities.

“Imports of key minerals—including lithium, cobalt, copper, graphite and nickel—jumped from 1.5 million tonnes in FY2023–24 to 2.7 million tonnes in FY2024–25, an increase of nearly 80 per cent. Strategic spending on processing, recycling and recovery infrastructure, along with international partnerships, will be vital to diversify supply," she said.

While recent budgets have expanded support for clean energy through schemes such as the PM Surya Ghar Muft Bijli Yojana, experts say the focus must now move further upstream.

Duttatreya Das, Energy Analyst for Asia at Ember, noted that after progress in solar module manufacturing, India should prioritise solar cells and wafers, battery storage and modern grid infrastructure, including high-voltage transmission.

“Securing the clean energy supply chain is the next big challenge," Das said, underscoring that storage and minerals will be decisive in determining whether India’s energy transition stays on track.

News india ‘No Storage, No Transition’: Experts Seek Budget Push For Battery Storage, Critical Minerals

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