Energy Storage

With record 40+ GW solar and wind installations (solar: 34.9+ GW, wind: 5.8+GW), 2025 has marked yet another high point in Indian annual renewable capacity additions. The capacity additions have been driven by strong project momentum across all solar segments.

While India has research capabilities across public laboratories and academic institutions in both rare earths and battery recycling, the transition from lab-scale innovation to industrial deployment has been slow. This gap between research and commercial execution continues to limit scale across the critical minerals ecosystem.

The Indian Ministry of Power has ordered all battery energy storage system (BESS) projects supported under the viability gap funding (VGF) scheme to meet a minimum 20% local content threshold, aiming to boost domestic manufacturing and innovation.

Hindustan Power secured nearly 1 GW of solar capacity and over 750 MWh of energy storage projects in 2025, significantly strengthening its renewable energy portfolio as it targets 5 GW capacity by 2028.

India is moving decisively beyond capacity addition toward system-level maturity. Expanded transmission planning, a more diversified energy mix and better regulatory clarity signal a market design that is becoming ever more dynamic and future ready.

The US state of Massachusetts has selected four battery projects totaling 1.3 GW under its first major procurement round to meet a statutory target of 5 GW of energy storage by 2030.

By combining proven global practices with solutions designed for Indian conditions, offering choices for different customer needs, and continuing to invest in meaningful innovation, India can build a solar ecosystem that is resilient and inclusive.

India’s battery storage landscape is undergoing a decisive transformation in 2025. Across utilities, regulators, and developers, BESS has moved beyond early-stage exploration and is increasingly recognized as an essential component for grid stability, renewable integration, and long-term energy planning.

The Solar Energy Corp. of India (SECI) has invited bids to develop 1 GW/8 GWh of pumped storage capacity across the country, aimed at providing large-scale, on-demand energy storage services to power distribution companies and other buying entities.

With peak power demand expected to approach 300 GW in the coming years and electricity demand growing at 6–7% annually, India would require nearly 230 GWh of energy storage capacity by 2030 to ensure grid stability, flexibility and reliability—said Bhupinder Singh Bhalla, Former Secretary, MNRE, at the Indian Power & Energy Storage Conference 2025, organised by FICCI.