India’s Battery Storage Additions Set for 10-Fold Jump
POWER & RENEWABLE ENERGY

India’s Battery Storage Additions Set for 10-Fold Jump

India’s battery energy storage capacity additions are expected to surge nearly ten-fold to about 5 GWh in 2026 from 507 MWh in 2025, driven largely by a sizeable backlog of projects under execution, according to a study by the India Energy Storage Alliance. The report notes that while 2025 was marked by unprecedented tendering activity, 2026 will be the year the sector transitions decisively from bidding to commissioning, as projects awarded since mid-2023 reach completion within typical timelines of 18 to 24 months.

IESA said 2026 represents a critical inflection point for the industry, with around 60 GWh of projects moving into the implementation phase after cumulative capacity under execution rose 84 per cent in 2025 to 224 GWh. IESA president Debmalya Sen said the focus will now be on whether projects perform in line with commitments, adding that financing—particularly for low-tariff projects—will be the next major challenge.

One of the most striking developments in 2025 was the sharp fall in tariffs. Standalone two-hour Battery Energy Storage System tariffs dropped from around Rs 0.221 million per MW per month in early 2025 to Rs 0.148 million per MW per month by the end of the year in a tender floated by APTRANSCO. Tariffs for solar-plus-four-hour BESS projects declined to Rs 2.70–2.76 per kWh, as more than 50 new bidders entered the market, intensifying competition.

March 2026 is expected to be a key milestone when Adani Group commissions one of the world’s largest single-location BESS projects, a 1,126 MW/3,530 MWh installation in Gujarat. January will see Rajasthan issue a tender for India’s largest solar-plus-BESS project at Pugal Solar Park, while the commercial and industrial segment is gaining traction following Juniper Green Energy’s commissioning of a 60 MWh merchant BESS project in December.

Vinayak Walimbe, managing director of Customized Energy Solutions, described the shift from tendering to execution in 2026 as a watershed moment for India’s energy storage sector. Government support has also played a role, with the second tranche of viability gap funding worth Rs 54 billion approved to back 30 GWh of standalone BESS capacity, alongside a mandate for 20 per cent domestic value addition. In addition, waivers on interstate transmission system charges have been extended until 2028 for pumped storage and solar-plus-BESS projects.

India’s battery energy storage capacity additions are expected to surge nearly ten-fold to about 5 GWh in 2026 from 507 MWh in 2025, driven largely by a sizeable backlog of projects under execution, according to a study by the India Energy Storage Alliance. The report notes that while 2025 was marked by unprecedented tendering activity, 2026 will be the year the sector transitions decisively from bidding to commissioning, as projects awarded since mid-2023 reach completion within typical timelines of 18 to 24 months. IESA said 2026 represents a critical inflection point for the industry, with around 60 GWh of projects moving into the implementation phase after cumulative capacity under execution rose 84 per cent in 2025 to 224 GWh. IESA president Debmalya Sen said the focus will now be on whether projects perform in line with commitments, adding that financing—particularly for low-tariff projects—will be the next major challenge. One of the most striking developments in 2025 was the sharp fall in tariffs. Standalone two-hour Battery Energy Storage System tariffs dropped from around Rs 0.221 million per MW per month in early 2025 to Rs 0.148 million per MW per month by the end of the year in a tender floated by APTRANSCO. Tariffs for solar-plus-four-hour BESS projects declined to Rs 2.70–2.76 per kWh, as more than 50 new bidders entered the market, intensifying competition. March 2026 is expected to be a key milestone when Adani Group commissions one of the world’s largest single-location BESS projects, a 1,126 MW/3,530 MWh installation in Gujarat. January will see Rajasthan issue a tender for India’s largest solar-plus-BESS project at Pugal Solar Park, while the commercial and industrial segment is gaining traction following Juniper Green Energy’s commissioning of a 60 MWh merchant BESS project in December. Vinayak Walimbe, managing director of Customized Energy Solutions, described the shift from tendering to execution in 2026 as a watershed moment for India’s energy storage sector. Government support has also played a role, with the second tranche of viability gap funding worth Rs 54 billion approved to back 30 GWh of standalone BESS capacity, alongside a mandate for 20 per cent domestic value addition. In addition, waivers on interstate transmission system charges have been extended until 2028 for pumped storage and solar-plus-BESS projects.

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