India’s power sector is entering a ₹1.4 trillion battery energy storage boom. Discover how Battery Energy Storage Systems (BESS) will reshape renewable energy, grid stability and clean power by 2030.
Reliable energy storage infrastructure is becoming the backbone of India’s clean energy future
India’s power sector is witnessing a silent yet powerful transformation. After remaining on the fringes of clean energy planning for years, Battery Energy Storage Systems (BESS) are now emerging as the next big investment magnet in India’s renewable energy ecosystem. With rapidly falling battery prices, strong government policy support, and rising renewable capacity, BESS is moving from “optional support technology” to core grid infrastructure.
According to industry estimates, investments in battery energy storage systems in India could touch ₹1.4 trillion by 2030, marking the beginning of a new energy storage revolution.
Why Battery Energy Storage is Crucial for India
India has made massive strides in expanding solar and wind power. However, renewable energy suffers from a critical limitation — intermittency. Solar power is unavailable at night, while wind output fluctuates seasonally and hourly. This creates instability in the grid, forcing power utilities to rely on coal-based plants for backup.
Battery Energy Storage Systems solve this challenge by storing surplus renewable electricity and releasing it when demand rises, ensuring:
- Grid stability
- Peak demand support
- Reduced coal dependence
- Better utilization of solar and wind power
- Lower power outages
Simply put, without storage, India cannot achieve its clean energy goals.
India’s Current BESS Capacity: Still in Early Stages
Despite the growing interest, India’s BESS journey is still at a nascent stage.
- India’s cumulative BESS capacity stands at around 0.5 GWh as of June 2025, according to the Central Electricity Authority (CEA).
- For context, 1 GWh of storage can power nearly 10,000 average Indian households for an entire month.
Compared to global developments, India still has a long road ahead.
In 2025 alone, 610 GWh of battery storage was installed globally, a 68% jump over the previous year, highlighting how rapidly the world is adopting large-scale energy storage.
Falling Battery Prices Are Driving Adoption:
One of the biggest catalysts for this BESS boom is the dramatic fall in battery prices.
| Year | Average Battery Cost |
|---|---|
| 2019 | Nearly $200 per kWh |
| 2025 | Below $100 per kWh |
(Source: ICRA)
This sharp decline has significantly improved the economic feasibility of grid-scale battery projects. According to ICRA, falling battery costs are hastening adoption of battery storage at grid level, and prices are expected to decline further in the coming decade.
Big Corporate Bets on BESS:
India’s largest energy conglomerates are now placing aggressive bets on battery storage.
Major Investors in India’s BESS Ecosystem:
| Company | Focus Area |
|---|---|
| Reliance Industries | End-to-end strategy — cell manufacturing, battery packs, BESS deployment |
| Adani Green Energy | Large-scale grid storage projects |
| Waaree Energies | Battery cell and pack manufacturing |
| JSW Energy | Renewable-linked storage projects |
| Premier Energies | Storage manufacturing and deployment |
Reliance Industries is building a fully integrated battery ecosystem, while Adani Green is deploying utility-scale battery storage for mega renewable parks. Waaree Energies is focusing on manufacturing capacity, strengthening India’s domestic battery supply chain.
Government’s Strong Push: ₹15,400 Crore VGF Scheme:
Recognizing the importance of energy storage, the Government of India has rolled out a massive policy framework to accelerate BESS deployment.
Key Policy Measures:
- ₹15,400 crore Viability Gap Funding (VGF) scheme to support 30 GWh of BESS capacity
- Target to crowd in ₹1.33 lakh crore of private investment
- Expansion of earlier VGF scheme which had ₹13,760 crore support for 13.2 GWh capacity
- Mandatory co-located battery storage for future solar tenders
In February 2025, the Central Electricity Regulatory Authority (CERA) issued a landmark advisory mandating:
Minimum two-hour co-located energy storage equivalent to 10% of installed solar capacity in future solar tenders.
This effectively makes battery storage a compulsory component of upcoming solar projects.
Battery Storage Becomes Core Grid Infrastructure:
Industry experts believe India is witnessing a structural shift in power infrastructure planning.
“Battery energy storage is no longer an ancillary to renewable generation in India — it is becoming core grid infrastructure,”
— Deepto Roy, Partner, Shardul Amarchand Mangaldas & Co.
India’s renewable targets cannot be achieved through generation alone. Without grid-scale storage, power evacuation, peak load management and grid balancing will remain unsustainable.
Investment Outlook: ₹1.4 Trillion by 2030:
ICRA estimates that cumulative investment in BESS in India could reach ₹1.4 trillion by 2030. This will lead to:
- New manufacturing hubs
- Large employment generation
- Reduced import dependence
- Growth of domestic lithium-ion and sodium-ion battery industries
- Lower electricity tariffs in long term
What Lies Ahead
Over the next five years, India will see:
- Mega battery parks linked to solar parks
- Mandatory battery storage integration in renewable tenders
- New gigafactories for battery cell manufacturing
- Grid modernization through AI-based energy management
- Reduced coal dependency
Battery storage will define how quickly India can transition to a low-carbon economy.
India’s power sector is standing at a historic inflection point. Battery Energy Storage Systems are no longer future technologies — they are today’s necessity. With falling costs, massive government incentives, and growing private sector confidence, India’s clean energy mission is finally getting its most critical missing piece.
As investments cross ₹1.4 trillion by 2030, battery storage will become the invisible backbone powering India’s renewable revolution.
FAQs on Battery Energy Storage Systems (BESS)
1. What is Battery Energy Storage System (BESS)?
Battery Energy Storage System (BESS) is a technology that stores electricity generated from renewable sources like solar and wind and supplies it when demand is high or power generation is low, helping maintain grid stability.
2. Why is BESS important for India’s power sector?
BESS is crucial for India because renewable energy is intermittent. Battery storage ensures continuous power supply, reduces dependency on coal, improves grid reliability, and supports India’s clean energy and net-zero goals.
3. How much is India investing in battery storage?
India is expected to invest nearly ₹1.4 trillion in Battery Energy Storage Systems by 2030, supported by strong government policies and private sector participation
4. What is the Viability Gap Funding (VGF) scheme for BESS?
The Government of India has launched a ₹15,400 crore Viability Gap Funding (VGF) scheme to support 30 GWh of battery energy storage capacity and encourage private investments in large-scale BESS projects.
5. How will BESS benefit common electricity consumers?
BESS will help reduce power cuts, stabilize electricity supply during peak hours, lower long-term power costs, and increase the use of clean renewable energy, making electricity more reliable and eco-friendly.
6. What does BESS mean in batteries?
BESS stands for Battery Energy Storage System. It refers to a complete setup that includes battery cells, power conversion systems, control software, and safety equipment that together store and supply electrical energy efficiently.
7. What are the disadvantages of BESS?
Some disadvantages of BESS include:
1. High initial installation cost
2. Limited battery lifespan (needs replacement after 8–12 years)
3. Performance reduction in extreme temperatures
4. Fire and thermal runaway risks if not managed properly
5. Disposal and recycling challenges
Despite these, falling battery prices and better safety technology are rapidly reducing these concerns.
8. Which is the best BESS system?
The “best” BESS system depends on application and scale. However, the most widely used and reliable systems include:
1. Lithium-ion BESS – Best for grid-scale and commercial use
2. Sodium-ion BESS – Low-cost alternative gaining popularity
3. LFP (Lithium Iron Phosphate) – Known for high safety and long life
4. Flow Batteries – Ideal for long-duration storage projects
For large solar and wind projects in India, LFP-based lithium-ion BESS is currently considered the best choice due to safety, durability, and cost efficiency.
Read More Technology and Gadgets:
Top 3 SUVs to Watch in November 2025: Hyundai Venue vs. Tata Sierra vs. Mahindra XEV 9S
Mahindra Scorpio N: Power, Presence & 5-Star Safety – The Ultimate Indian SUV?
Maruti Suzuki Escudo (Y17): Everything You Need to Know About Maruti’s Next Big SUV
Tata Nexon 2026: Next-Gen SUV Arrives! Future-Ready Tech & Bold New Design!
Tata Harrier EV Launched: India’s Longest-Range Electric SUV With 627 km Per Charge
Samsung Galaxy S26 Ultra Launch in India: Expected Date, Price, Camera, and Specifications
Huawei Unveils 18-Inch Foldable MateBook Fold Ultimate: No Windows, Only HarmonyOS
Vivo X200 FE 5G & X Fold 5 Unveiled: Prices, Specs, Offers!
To get instant Technology & Gadgets blogs notifications like this! Join the WhatsApp & Telegram groups. Click to Join Below Button 👇