Indias battery storage demand to hit 236.22 GWh by FY32, require Rs 3.49 trillion investment: Report

The country witnessed a sharp acceleration in BESS deployment in 2026, with 8.2 GWh of capacity added between January and June, compared with less than 100 MWh in the same period of 2025, it noted.

Furthermore, as of August 2026, 9.08 GWh of BESS capacity was operational, while 79.92 GWh was under construction, with 79.92 GWh under construction, 24.13 GWh awarded, and 63.53 GWh under tendering, taking the total operational and identified project capacity to 176.66 GWh, with the current CEA project pipeline scheduled for commissioning till FY202930.

In capacity terms, the report noted, this represents approximately 75% of the NEPs projected FY203132 requirements, although the identified capacity is at different stages of development and is not yet fully operational.

The share of BESS in Indias total energy storage requirement is expected to increase from ~42% in FY202627 to ~57% in FY203132, it said.

The report estimated that India will require around Rs 3.49 trillion in investment in the sector by FY2031-32. Separately, the broader energy storage sector is expected to attract about Rs 4.79 trillion in investments by 2032.

The report expects Indias BESS market to expand strongly, supported by investments in domestic battery manufacturing, a sizeable project pipeline and government initiatives. Measures including Viability Gap Funding (VGF), the National Programme on Advanced Chemistry Cell (ACC) Battery Storage and interstate transmission system (ISTS) charge waivers are expected to improve project viability and encourage private-sector participation.

The government is also stepping up support for the sector. The Union Cabinet has approved the Rs 1.86 trillion PM-DHARA (PM-Developing Harmonized and Accelerated Renewable-energy Access) Scheme, which includes Rs 500 billion for the deployment of 50 GWh of BESS capacity by FY2032-33, it noted. (ANI)