India Must Scale Energy Storage As Renewable Capacity Rises
POWER & RENEWABLE ENERGY

India Must Scale Energy Storage As Renewable Capacity Rises

Industry stakeholders have warned that India must rapidly scale energy storage systems as renewable capacity expands, noting a significant shortfall in domestic battery cell component manufacturing. They cautioned that import dependence should not be used as a reason to slow deployment of storage and that the grid requires firming capacity now to support additional renewable generation. The observations were shared with the Press Trust of India (PTI) by industry members and gain urgency amid accelerating tendered demand for storage.

Domestic battery manufacturing currently accounts for less than one per cent of demand, with two gigawatt-hour (GWh) of commissioned cell capacity against an approximately 260 GWh demand pipeline from competitive tenders in 2026. The shortfall in cell and component production underlines structural reliance on imports and constrains the pace at which storage can be deployed at scale. Stakeholders said that bridging manufacturing capability and procurement timelines will be critical to meeting policy ambitions.

Battery energy storage systems and pumped storage projects are being prioritised to balance solar generation with peak demand and to address intermittency risks. Company executives described storage as essential to unlock the growth potential of solar power and to ensure reliable supply during non-solar hours. Industry leaders observed that domestic cell manufacturing capacity is years behind projected demand rather than merely quarters behind. They warned that delaying storage deployment until cells are fully indigenous would jeopardise grid stability.

The National Thermal Power Corporation (NTPC) disclosed allocation of five GWh of battery energy storage capacity under the Viability Gap Funding scheme to optimise thermal assets and existing transmission infrastructure. Research by Wood Mackenzie concluded that it will take more than a decade for India to become self-sufficient in battery storage, noting China's cumulative capacity of 2695 GWh and its domination of between 85 per cent and 98 per cent of key supply chain segments. The prevailing view among stakeholders was that policy and investment must accelerate both deployment and manufacturing to close the gap.

Industry stakeholders have warned that India must rapidly scale energy storage systems as renewable capacity expands, noting a significant shortfall in domestic battery cell component manufacturing. They cautioned that import dependence should not be used as a reason to slow deployment of storage and that the grid requires firming capacity now to support additional renewable generation. The observations were shared with the Press Trust of India (PTI) by industry members and gain urgency amid accelerating tendered demand for storage. Domestic battery manufacturing currently accounts for less than one per cent of demand, with two gigawatt-hour (GWh) of commissioned cell capacity against an approximately 260 GWh demand pipeline from competitive tenders in 2026. The shortfall in cell and component production underlines structural reliance on imports and constrains the pace at which storage can be deployed at scale. Stakeholders said that bridging manufacturing capability and procurement timelines will be critical to meeting policy ambitions. Battery energy storage systems and pumped storage projects are being prioritised to balance solar generation with peak demand and to address intermittency risks. Company executives described storage as essential to unlock the growth potential of solar power and to ensure reliable supply during non-solar hours. Industry leaders observed that domestic cell manufacturing capacity is years behind projected demand rather than merely quarters behind. They warned that delaying storage deployment until cells are fully indigenous would jeopardise grid stability. The National Thermal Power Corporation (NTPC) disclosed allocation of five GWh of battery energy storage capacity under the Viability Gap Funding scheme to optimise thermal assets and existing transmission infrastructure. Research by Wood Mackenzie concluded that it will take more than a decade for India to become self-sufficient in battery storage, noting China's cumulative capacity of 2695 GWh and its domination of between 85 per cent and 98 per cent of key supply chain segments. The prevailing view among stakeholders was that policy and investment must accelerate both deployment and manufacturing to close the gap.

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