Key facts
- India's battery storage installations are projected to grow nearly 50-fold by FY32.
- Nuvama analysts forecast total BESS capacity to reach 302 GWh by FY32, up from 6.3 GWh.
- The projected compound annual growth rate for BESS installations is 91% through FY32.
- The Central Electricity Authority estimates BESS installations at 236 GWh by FY32.
- IESA estimates India will need 888 GWh of energy storage capacity by 2035-36.
- New regulations requiring battery storage for solar and wind projects will be introduced from July 1, 2027.
India's battery energy storage systems (BESS) capacity is poised for a dramatic increase, with projections indicating a nearly 50-fold surge to 302 gigawatt-hours (GWh) by the 2032 fiscal year, according to a report by Nuvama. This growth is driven by the nation's expanding renewable energy sector, which necessitates enhanced storage solutions for grid flexibility and reliability.
Nuvama analysts forecast a compound annual growth rate of 91% for BESS installations during this period. In contrast, India's Central Electricity Authority estimates BESS installations to reach 236 GWh by FY32. The India Energy Storage Alliance (IESA) has projected an even greater need, estimating that India will require approximately 888 GWh of energy storage capacity by 2035-36 to manage rising electricity demand and integrate renewable power sources effectively.
Ashok Jhunjhunwala, Institute Professor at IIT Madras, highlighted the critical role of energy storage in India's energy transition, stating, "Energy storage will be one of the defining technologies of India’s energy transition." He emphasized that renewable energy must be supported by storage to create a more robust, dependable, and affordable power system.
To facilitate this expansion, India plans to implement a new regulation from July 1, 2027, mandating that developers of solar and wind energy projects install battery storage at their sites. This measure aims to better manage the often-intermittent output of renewable sources and reduce curtailments, which have hindered the full utilization of India's growing solar and wind capacities.