India’s total Battery Energy Storage System (BESS) capacity reached 219.1 MWh as of March 2024, according to Mercom India Research’s newly released report, India’s Energy Storage Landscape.

According to the report, 1.6 GWh (~1 GW) of standalone BESS, 9.7 GW of renewable energy projects with energy storage, and 78.1 GW of pumped hydro projects were in various stages of development (60 GW under survey and investigation, and 18.1 GW under development) as of March 2024.

The report is a comprehensive overview of energy storage system projects across the country, detailing the status of installations, key states for capacity development, tariff trends, the pipeline of standalone BESS projects, and integration of renewable energy with BESS and pumped storage.

Renewable energy sources, mainly solar and wind, comprised 28.9% of the country’s electricity capacity as of March 2024. However, the intermittent nature of renewable energy has significantly affected grid stability. Policy measures such as the deviation settlement mechanism, grid connectivity regulations, and ancillary services regulations are being implemented to ensure efficient renewable integration and grid stability. These measures are driving the demand for utility-scale energy storage.

The ₹37.6 billion (~$452 million) Viability Gap Funding (VGF) program aims to install 4 GWh of BESS by the financial year 2026. The VGF, combined with energy storage obligations and bidding guidelines for energy storage projects—whether standalone or integrated with renewable energy—is expected to advance the country’s energy storage project pipeline significantly.

India began adding energy storage capacity in 2013 with small pilot projects. By March 2024, the country’s cumulative installed energy storage capacity reached 219.1 MWh (~111.7 MW), with 120 MWh (40 MW) added in the first quarter of 2024 alone.

Solar photovoltaic (PV) and battery energy storage systems (PV + BESS) comprised 90.6% of the total installed capacity.

“India is an emerging market for energy storage, still in the early stages of development. Despite rapid growth in renewable energy, energy storage has lagged, which could potentially lead to curtailment and a lack of grid flexibility and stability. The urgency seen in renewable energy initiatives has been missing in energy storage. To meet energy transition goals and manage the exponential increase in renewable energy, the government must prioritize energy storage to avoid issues faced by other countries with growing intermittent power but insufficient storage capacity,” said Raj Prabhu, CEO at Mercom Capital Group.

Chhattisgarh led the country with the highest BESS capacity, accounting for 54.8% of the cumulative installed capacity, all commissioned in Q1 2024.

According to data from the Central Electricity Authority, India’s operational pumped hydro storage capacity stood at 3.3 GW as of March 2024. Nearly 76% of this capacity is in Telangana and West Bengal, while Gujarat had 1.4 GW of installed pumped non-operational storage capacity.

Rajasthan had the highest capacity of standalone BESS under development. This growth is driven by favorable provisions for energy storage capacity development in the state’s renewable energy policy and annual energy storage obligations, applicable until the financial year 2030.

To meet the demand for efficient energy utilization from renewable sources, various agencies issued tenders totaling 57 GW and auctioned 11.5 GW of energy storage projects, with or without renewable energy capacities, as of March 2024.

Stakeholders will find this report helpful for understanding India’s energy storage systems environment, the policies driving capacity additions, and the expansion trajectory of the country’s energy storage market. For more information, visit Mercom India Research.

Mercom’s “India’s Energy Storage Landscape” report is 54 pages long and covers all facets of India’s energy storage projects. To access the complete report, visit here: https://www.mercomindia.com/product/india-energy-storage-landscape