The share of solar and wind energy in India’s power mix was over 30% as of September 2024.

The demand for utility-scale energy storage systems in India is primarily from the significant capacity of intermittent renewable energy sources in the installed power mix. Energy storage systems have become critical to managing the generation variability of renewables and ensuring grid stability by increasing renewable energy capacity.

India has witnessed a steady increase in demand for battery energy storage systems (BESS) to meet round-the-clock and peak power supply requirements. The government launched a ₹37.6 billion (~$452 million) viability gap funding program to support the installation of 4 GWh of BESS by the financial year 2026.

In 2024, tenders to develop projects with 3,625 MW/8,100 MWh of standalone BESS were floated by various agencies in India.

Here are the top tenders issued in 2024:

#1 The largest tender was issued by Solar Energy Corporation of India to develop 1,000 MW/2,000 MWh standalone BESS under tariff-based global competitive bidding. The BESS is mandated to be made available for on-demand charging and discharging.

#2 The second largest one was tendered by NTPC Vidyut Vyapar Nigam (NVVN) to develop 500 MW/1000 MWh standalone BESS with viability gap funding (VGF) support. The BESS must be made available to NVVN for on-demand charging and discharging.

#3 Rajasthan Rajya Vidyut Utpadan Nigam floated tender set up 500 MW/1,000 MWh standalone BESS with a greenshoe option of 500 MW/1000 MWh. The minimum bid size was 250 MWh (125 MW x 2 hours), with a maximum of 125 MW/250 MWh per location and 17,500 square meters of land allocated per 125 MW/250 MWh project.

#4 Gujarat Urja Vikas Nigam (GUVNL) issued two tenders to set up 500 MW/1,000 MWh standalone BESS with VGF support. Under Phase IV, the initial tender was issued for 400 MW/800 MWh standalone BESS with a greenshoe option of 400 MW/800 MWh. In the updated tender, the VGF for each developer is capped at ₹2.7 million (~$32,114 )/MWh or 30% of the project’s capital cost, whichever is lower.

#5 The other tender for 500 MW/1,000 MWh standalone BESS was announced by GUVNL under tariff-based global competitive bidding (Phase III). The initial tender was for 250 MW/500 MWh with another 250 MW/500 MWh under the greenshoe option. The projects will be developed under a build, own, and operate model. GUVNL will utilize energy storage systems on an on-demand basis that are suited to the requirements of the state distribution companies during peak and off-peak hours.