Energy storage is set to become the lynchpin of India’s clean energy future. The government has announced plans to scale up battery energy storage system (BESS) capacity to 74 GW by 2032, a staggering leap from today’s modest base of around 205 MW.
Key Developments:
VGF Scheme: The government’s Rs 5,400 crore Viability Gap Funding aims to support 30 GWh of large-scale storage, de-risking projects for developers and accelerating deployment.
Emerging Technologies: The landscape is rapidly diversifying beyond lithium-ion, including sodium-ion, vanadium redox flow, and zinc-air solutions—driven by India’s focus on securing domestic supply chains and reducing import reliance.
Grid Integration: As solar and wind upend the traditional power grid with intermittency, utility-scale batteries are crucial for balancing demand, providing backup during outages, and supporting round-the-clock clean power.
Market Outlook:
With major tenders in the works, partnerships forming between Indian and global energy majors, and policy support at all levels, 2025-26 is expected to be a defining period for battery storage. This transition will help stabilize renewable integration, strengthen energy security, and solidify India’s status as a leader in the global clean energy revolution.