India’s Energy Storage Capacity to Surge 10x by 2026: IESA

India’s energy storage request is heading into a decisive growth phase in 2026, with battery energy storage system (BESS) capacity additions anticipated to launch nearly tenfold, according to the India Energy Storage Alliance (IESA). The sector is projected to add around 5 GWh of capacity in 2026, up from just 507 MWh in 2025, marking a major vault in India’s clean energy transition. This rapid-fire scale-up positions India’s energy storehouse request, battery energy storehouse India, BESS capacity India, renewable energy storehouse, and India’s clean energy transition as central pillars of the country’s power sector metamorphosis.

IESA’s rearmost request analysis highlights that 2026 will be a watershed time as the assiduity moves from aggressive extending to factual prosecution. The total commissioned capacity until 2025 is at 708 MWh, emphasizing how early-stage the sector still is. Still, with nearly 60 GWh of systems now entering the preparation phase, India is poised to demonstrate whether its ambitious storehouse targets can be delivered on the ground.

From Record Extending to Real Means on the Ground

The time 2025 was defined by unknown extending exertion, with 69 tenders totaling 102 GWh issued in a single time—nearly equal to all tenders released between 2018 and 2024 combined. This took the accretive proffered capacity to 224 GWh, an 84 jump time-on-time. While 2025 was about erecting a channel, 2026 will be about converting those tenders into functional systems.

Debmalya Sen, president of IESA, noted that all eyes will be on design performance and delivery timelines. With typical design cycles of 18 to 24 months, numerous of the systems awarded since mid-2023 are now approaching commissioning. “2026 will be the time when a number of systems will enter the functional phase. The coming challenge is backing up these systems, especially the bones.
with low tariffs,” Sen said, pressing enterprises over fiscal viability.

Tariff Collapse Raises Viability Questions

One of the most dramatic developments of 2025 was the steep decline in tariffs. Standalone 2-hour BESS tariffs fell sprucely from INR 2.21 lakh per MW per month at the beginning of the time to INR 1.48 lakh per MW per month in APTRANSCO’s time-end tender. Solar-plus-4-hour-BESS tariffs also dropped to INR 2.70–2.76 per kWh, attracting over 50 new stabs into the request.

While the aggressive pricing reflects strong request confidence and rising competition, it has also raised red flags. Backing has only been secured for a sprinkle of systems so far, despite the large volume of awarded tenders. Assiduity experts continue to question whether all systems will reach completion, particularly in light of uncertain battery costs and tensing perimeters.

2026 to test large-scale prosecution

March 2026 is anticipated to be a pivotal corner when Adani commissions one of the world’s largest single-position BESS systems in Gujarat, with a capacity of 1,126 MW/3,530 MWh. This design will be closely watched as a litmus test for India’s capability to deliver storehouses at scale. In January, Rajasthan is set to float a tender for the country’s largest solar-plus-BESS design at Pugal Solar Park, further strengthening the channel.

At the same time, the marketable and artificial (C&I) member is showing early signs of instigation. Juniper Green Energy’s 60 MWh trafficker BESS installation in December has opened the door for private sector participation beyond mileage-led systems, indicating a broader request for elaboration.

Government Support and Policy Push

The central government has played a critical part in boosting investor confidence through policy support. The alternate tranche of Viability Gap Funding (VGF) worth INR 5,400 crore is backing 30 GWh of standalone BESS systems, with an accreditation for 20 domestic value additions. Interstate Transmission System (ISTS) charge quitclaims have been extended until 2028 for pumped storehouse and solar-plus-BESS systems, further perfecting design economics.

Countries are also stepping up. Rajasthan has commanded 5 energy storehouses for renewable systems above 5 MW, while Bihar has blazoned plans to develop 6.1 GWh of storehouse capacity by 2030. These measures reflect growing recognition of storehouses as essential to grid stability and renewable integration.

Pumped Storage and New Market Segments

Pumped-storage hydro is arising as another major growth area. The competitive bidding channel for pumped storage has expanded to 132 GWh from 50 GWh in 2024. A corner 1.5 GW/12 GWh pumped hydro power purchase agreement between JSW and UPPCL in Uttar Pradesh at INR 77.2 lakh per MW per time has set a new standard for the sector.

Meanwhile, NTPC’s thermal-plus-BESS design could unleash an entirely new request member if successful, combining conventional generation with a storehouse for grid balancing. Similar mongrel models may become decreasingly important as renewable penetration rises.

Cost Pressures and Global Misgivings

Despite the sanguinity, IESA has flagged significant misgivings. China’s tightening trade programs and import restrictions on battery accoutrements could disrupt force chains and undermine cost hypotheticals behind ultra-low tariffs. Battery prices, which drove earlier cost declines, have shown signs of recession, raising questions about unborn pricing trends.

Vinayak Walimbe, Managing Director of Tailored Energy Results, stressed that 2026 will test not just bidding aggression but delivery capability. “Success in 2026 will bear functional excellence, innovative backing structures, and force chain adaptability. The assiduity must now prove that India can execute at scale what it has successfully proffered,” he said.

With only 758.4 MWh of accretive commissioned capacity so far, the scale of prosecution ahead is immense. As India enters 2026, the energy storehouse sector stands at a defining moment—poised between ambitious pledges and the hard reality of design delivery.