India may offer viability-gap funding or grants to companies for building energy storage projects and offshore wind power plants in the budget, two government officials aware of the plans said.

The government is also considering installing new power transmission lines to tap the large hydropower potential in India’s strategic northeast region and incentives for setting up battery swapping infrastructure for electric vehicles in the budget, the officials said, requesting anonymity.

Large battery storage and hydropower plants can help keep India’s power grids stable, given the intermittent nature of electricity from clean energy sources such as solar and wind.

Prime Minister Narendra Modi pledged at the COP26 summit to meet half of the country’s energy requirements from renewable energy by 2030 and boost non-fossil fuel power generation capacity to 500 gigawatts (GW) by the end of this decade.