India Unveils New Energy Storage Support Policy: Mandating Storage Deployment for Distribution Companies, with Subsidy Target of 92 GWh

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India Unveils New Storage Support Policy: Mandating Storage for Distribution Companies, Subsidy Target of 92 GWh

On November 5, it was reported that India's Ministry of Power plans to convert energy storage deployment by distribution companies from a guideline requirement into a mandatory obligation (rules expected to be finalized by March 2027). The Cabinet has approved Rs 145 billion in Viability Gap Funding (VGF) to support 92 GWh of grid-scale storage during FY2026–2030 (30 GWh battery storage + 60 GWh pumped hydro). Battery energy storage systems must source 40% of components locally. If implemented, the policy will unlock clear demand visibility, but the localization threshold will reshape the supply chain landscape.

USD 1 Billion! State Grid Makes a Move in Oman with 1 GW of Storage

On November 2, State Grid International Development Co., Ltd. signed a framework agreement with Oman's Nama Holding to jointly evaluate and develop two battery energy storage systems (BESS) of 500 MW each — totaling 1 GW — near Duqm and Ibri, to be connected to Oman's 400 kV transmission network. The project package is estimated at around USD 1 billion in investment and is currently in the pre-assessment and joint development stage. This marks a key step for State Grid — which has held a 49% stake in Oman's National Grid Company since 2020 — from "transmission network operation" toward system-level output of "renewables + storage." Once operational, the projects will effectively support renewable energy integration and grid stability in Oman, and signal that Chinese grid companies' overseas expansion is moving beyond EPC contracting and equity investment toward integrated output of "standards + storage + grid operation."

Sichuan Tightens Storage Quotas: Project Lists Centralized at Provincial Level, Change of Investment Entities Banned

On November 4, the Sichuan Provincial Development and Reform Commission and Provincial Energy Bureau issued the "Three-Year Action Plan for New Energy Storage Projects (2026–2028)," targeting more than 13 GW / 26 GWh of new-type storage additions over three years — including 5 GW on the generation side, 6 GW on the grid side, and over 2 GW for multi-scenario applications. The plan also calls for accelerating the establishment of a capacity-price mechanism for grid-side independent storage, driven by "capacity compensation + market revenue" to activate investment. This marks Sichuan's shift from "renewables meeting allocation ratios" toward an integrated "generation-grid-load-storage" system layout, with three-year scale expected to jump fivefold.

AI + Storage Safety Included in National-Level Pilot Program; Multiple Leading Companies Shortlisted

On November 3, the National Energy Administration published the list of "AI+" energy pilot projects, with 93 projects admitted, including 3 dedicated storage programs focusing on full-lifecycle safety diagnosis to address pain points such as battery health assessment and thermal runaway early warning. The China Energy Group New Energy Research Institute is leading the development of a "cloud-edge-terminal" multi-agent collaborative diagnosis platform, working with CATL, EVE Energy, Sungrow and universities on joint R&D; China Resources New Energy and Huadian New Energy are simultaneously leading related pilot projects. This pilot marks a shift in storage safety management from post-event tracing to proactive early warning and active protection. AI-powered diagnostic technology is expected to empower storage grid-connection management, station O&M, and asset valuation, continuously improving the safe operation of new-type storage.

ICC's Weekly Energy Storage Market Analysis

This week, cell prices remained stable. Domestically, Huawei and Kehua successively implemented equipment price increases, and multiple grid-forming utility-scale storage projects accelerated their rollout — integrator profitability is expected to improve. Overseas, India rolled out storage support subsidies and plans to enforce mandatory storage deployment for distribution companies, while setting localization procurement requirements: overseas mandatory storage deployment plus expanding long-duration scenarios, but localization has become a hard constraint. On the policy front, the National Energy Administration's "AI+" energy pilot program listed full-lifecycle storage safety diagnosis as a key direction, guiding the industry's competitive focus from hardware cost reduction toward safety management and intelligent operation. The competitive moats of leading companies with system-integration capabilities, overseas compliance footprints, and intelligent technology reserves continue to strengthen.

Energy Storage Tender Market:​

Weiyuan County 200 MW / 800 MWh New Independent Energy Storage Station

The project is invested in and built by Weiyuan Yiyuan New Energy, adopting an LFP string-type (distributed) storage solution with 32 integrated units of 6.25 MW / 25 MWh, 128 battery containers and 512 PCS, plus a new 110 kV step-up substation. Sinohydro Bureau 1 won the EPC contract at RMB 632.4 million, equivalent to RMB 0.7905/Wh — the lowest utility-scale EPC bid in Northwest China this week, below comparable grid-forming storage projects in Inner Mongolia and Xinjiang in the same batch. With a planned construction period of 270 days, the station will participate in grid peak-shaving, frequency regulation, and spot power trading upon commissioning.

ICC Xinluo's Weekly Overview of Storage Projects Grid-Connected/Commissioned:​

Yanchi Gaoshawo 320 MW / 640 MWh Energy Storage Station

• Location:​ Gaoshawo Town, Yanchi County, Wuzhong City, Ningxia
• Storage capacity:​ 320 MW / 640 MWh
• Commissioned:​ November 4, 2026
• Project overview:​ Xinneng Co. announced that the Yanchi Gaoshawo 320 MW / 640 MWh storage station, invested in and built by its controlled subsidiary, completed major equipment installation and system commissioning and was successfully connected to the grid. Located in Gaoshawo Town, Yanchi County, Wuzhong City, Ningxia, the project supports the local 1.2 GW wind-solar-storage base, adopts an LFP liquid-cooling system, and is configured with 64 integrated PCS units and 128 battery containers, connected to the step-up substation via 11 collector lines at 35 kV. Total dynamic investment is approximately RMB 492 million.

ICC Xinluo's Weekly Summary of Selected Storage Project Tenders and Awards: