NEW DELHI, Dec. 12 -- More efficient batteries with longer lifecycles could be mandated to address grid stability concerns under a scheme that offers incentives to produce 10 gigawatt-hour (GWh) of utility-scale power storage, said two people in the know of the developments.

"The ministry of new and renewable energy (MNRE) is likely to suggest two new elements of requirement. One is the criterion of round-trip efficiency to ensure that out of the energy infused in a battery, the maximum quantum is usable by the battery or grid operator," said one of the two people quoted earlier. Round-trip efficiency is the percentage of usable energy consumed to charge the battery.

"The other thing being considered is the lifecycle of the battery," sa...