India’s Energy Storage Hits Record 8.1 GWh In July

India made a historic leap in its energy storage ambitions in July 2025, when state governments collectively tendered a record-breaking 8.1 GWh of capacity—marking the highest monthly amount in the country’s history. This surge is seen as critical for boosting grid resilience and accelerating the transition to renewables.

Although economic plans forecast India’s total energy storage capacity exceeding 81 GWh by fiscal year 2026–27, this figure now seems increasingly attainable thanks to the volume of tenders launched in a single month.

The Central Electricity Authority (CEA), as outlined in the National Electricity Plan, projects that by 2026–27 India will require approximately 82 GWh of storage—about 47.6 GWh from pumped hydro (PSP) and 34.7 GWh from battery-based storage (BESS). By 2031–32, these requirements are expected to skyrocket to 411 GWh, with 175 GWh of PSP and 236 GWh of BESS.

CEA Chairperson Ghanshyam Prasad announced in July 2025 that India aims to deploy 8,500 MWh (8.5 GWh) of battery energy storage by the end of 2027, scaling up further to reach 74,000 MWh (74 GWh) by 2031–32. While installed BESS capacity currently sits at a modest 506 MWh, numerous projects are already in the pipeline or under tender.

Such expansions include both standalone BESS projects and hybrid installations that pair renewable energy generation with storage. As of March 2024, India’s total BESS capacity stood at 219.1 MWh, of which over half (54.8 %) was in Chhattisgarh; around 90.6 % of that capacity was tied to renewable generation. India’s pumped hydro storage capacity stood at roughly 3.3 GW, mostly in Telangana and West Bengal.

Since 2018, India has launched tenders for a total of 171 GWh of energy storage capacity—comprising 106 GWh in pumped hydro and 66 GWh of BESS. Over 55 GWh were issued during the first half of 2025 alone. Despite some cancellations, nearly 50 GWh is now under construction.

India has also begun operationalizing pumped storage projects at sites like Tehri in Uttarakhand and Pinnapuram in Andhra Pradesh. The country aims to scale pumped hydro capacity from the current 5 GW to over 50 GW by 2031–32.

Policy measures are further propelling the sector. The Ministry of Power introduced Energy Storage Obligations (ESO) under Renewable Purchase Obligations (RPO)—mandating obligated entities to store a gradually increasing portion of power, beginning at 1 % in FY 2023–24 and rising to 4 % by FY 2029–30—with the stipulation that at least 85 % of stored energy come from renewable sources.

Financial incentives include a viability gap funding (VGF) scheme providing up to 40 % capital support for BESS projects, and a separate ₹2.1 billion manufacturing incentive to promote local cell production. The government is also exploring battery mineral sourcing agreements and diversifying into long-duration storage beyond lithium-ion technologies.

Nevertheless, India faces key challenges. Storage capacity remains insufficient to entirely complement accelerating renewable generation. Global scarcity of critical minerals, underdeveloped local battery manufacturing, and the predominance of coal-power (accounting for over 70 % of generation) remain hurdles.

Experts warn that without adequate storage, India risks curbing renewable integration or even destabilising the grid with surpluses during midday hours. But the government’s recent tendering momentum, policy support, and private investment are viewed as turning points.

Looking ahead, the energy landscape is set to evolve rapidly. CEA expects a five‑fold growth in energy storage capacity between 2026 and 2032, with investments nearing ₹4.8 lakh crore ($57 billion) by 2032, according to IESA projections.

In July 2025 alone India tendered 8.1 GWh—nearly its entire battery storage goal for 2026 in a single month. With pipeline projects, growing financial and policy backing, and the urgent need to balance a growing renewable mix, the stage is set for a radical expansion of the energy storage sector—essential if India is to meet its 500 GW renewable capacity by 2030 and achieve net‑zero by 2070.