Power – Sector Update – India’s power storage at inflection point
Published on 16 Jan 2026
India’s power storage sector is set for a rapid scale-up as rising RE penetration calls for grid flexibility and stability. Operational urgency is due to expectation of rising evening ramp-up rates of ~25GW/hour on normal days to over 40GW/hour under stress, implying a requirement of 100–160GWh of 4-hour storage to manage net-load shifts from late afternoon to evening. Compared with this, India’s installed storage capacity stands at ~6.5GW (~1% of total power capacity) and the Central Electricity Authority (CEA) projects it to increase to 50GW+ by FY30 (~6% of power capacity). Within that, battery energy storage system (BESS) is expected to contribute 50%+ to it at ~208GWh by 2030 (as per CEA). This represents ~Rs2.5trn investment opportunity at current costs. This opportunity spans a broad ecosystem from asset owners to battery cell and pack manufacturers, supported by power electronics suppliers, thermal management providers, EPC players, and upstream battery chemical manufacturers. Currently, over 0.5GWh of BESS capacity is operational and 77GWh is under various stages of construction/bidding.
