India’s BESS Opportunity: A New Industry Waiting to Be Built

India has built less than 1% of its required battery storage, leaving a massive 208 GWh gap. This opens up one of the biggest clean energy opportunities of the decade.

India is accelerating its push toward energy storage as it prepares to integrate large-scale renewable power into the grid.

According to the Ministry of Power, the country will require 208 GWh of Battery Energy Storage Systems (BESS) by 2030 to support its target of 500 GW non-fossil fuel capacity.

India is growing dependence on solar and wind energy, making the electricity storage a critical component.

Battery storage systems will provide grid services such as frequency regulation, voltage control, and black start capabilities.

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Data from the Central Electricity Authority shows that India currently has around 798 MWh of operational BESS capacity, while 35.8 GWh is under construction.

To support the energy transition, Government of India has rolled out a mix of policy and financial measures. These include amendments to electricity rules recognising storage as part of the power system, inclusion of energy storage in infrastructure financing frameworks, and tariff-based competitive bidding mechanisms for procurement.

On the demand side, incentives such as waiver of interstate transmission charges for storage projects and participation in high-price power markets have been introduced.

Additionally, two viability gap funding (VGF) schemes aim to support nearly 43 GWh of storage capacity.

Manufacturing is also being pushed through a ₹18,100 crore PLI scheme for advanced battery technologies. The sharp gap between current capacity and projected demand also signals a significant opportunity for developers, manufacturers and system integrators to build India’s energy storage ecosystem.

This information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a written reply in the Rajya Sabha on March 30, 2026.

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Pratyush Kumar
Pratyush Kumar
Pratyush Kumar is a senior journalist at EFY covering business, tech, and markets. Pratyush has a background in TV reporting and has a keen interest in electronics and emerging gadgets.

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