India’s battery energy storage sector is approaching a major growth phase, with installations projected to rise nearly tenfold in 2026. A report by the India Energy Storage Alliance estimates that capacity additions could increase from about 507 MWh in 2025 to roughly 5 GWh in 2026, signalling a decisive shift from planning to large-scale implementation.
Strong Project Pipeline Gathers Momentum
Over the past few years, multiple tenders and awards have been issued in the battery energy storage segment. These projects are now rapidly moving from the bidding stage to execution and commissioning. A sizeable portion of awarded capacity is under construction, while several other projects are in advanced stages of development, reflecting growing confidence among developers, utilities, and investors in India’s energy transition path.
This acceleration highlights the sector’s progression from concept and contracting to on-ground delivery, supported by improving policy clarity and clearer revenue frameworks.
2026: A Crucial Year for Delivery
The year 2026 is expected to be a real test of the industry’s ability to convert an impressive pipeline into operational assets. A number of marquee installations are scheduled during this period, including Adani Group’s large battery energy storage system (BESS) project in Gujarat and solar-plus-storage projects in Rajasthan.
Market dynamics have also evolved meaningfully, with tariffs for standalone two-hour storage systems falling sharply in recent auctions. While this has boosted competitiveness, it has simultaneously made financing more challenging, particularly for projects awarded at lower tariff levels.
Policy Support and Market Drivers
Government support remains a key enabler for the storage ecosystem. Measures such as viability gap funding of ₹5,400 crore and waivers on interstate transmission charges have encouraged project development and improved project economics.
Energy storage capacity is expected to play a central role in integrating higher shares of renewable power into the grid, enhancing system stability and helping meet rising electricity demand while supporting decarbonization goals.
Summary
Battery energy storage installations in India are expected to rise from about 507 MWh in 2025 to around 5 GWh in 2026 — nearly a tenfold increase. Key drivers include:
- a large pipeline of projects moving from tendering to execution,
- landmark projects such as Adani’s BESS in Gujarat and solar-plus-storage projects in Rajasthan,
- falling storage tariffs reshaping market competitiveness,
- strong policy support through viability gap funding and transmission-charge waivers, and
- growing need for grid stability as renewable energy integration accelerates.
2026 is set to be a pivotal year, testing the sector’s ability to translate plans into large-scale operational capacity.
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