The India battery energy storage system (BESS) market was valued at USD 1.59 billion in 2025 and is projected to reach USD 20.37 billion by 2035, growing at a robust CAGR of 29.1% during the forecast period from 2026 to 2035.
India’s broader energy storage system (ESS) market has expanded rapidly, with cumulative capacity increasing from 122 GWh to 224 GWh, representing a 1.8x year-over-year (YoY) growth. Currently, around 60 GWh of projects are under execution, 80 GWh are in various stages of tendering, and 35 GWh have already been awarded.
The total pipeline of battery energy storage system (BESS) projects now stands at 92 GWh, up sharply from just 19 GWh in 2024, marking an increase of 74 GWh within a year. In parallel, the pipeline for pumped storage projects (PSP), also referred to as pumped hydro energy storage (PHES), has grown to 132 GWh, compared with only 50 GWh that entered competitive bidding in 2024. Commissioned BESS capacity currently stands at 0.8 GWh, with 2026 expected to be a milestone year, as nearly 5 GWh of projects are projected to come online.
During 2025, a total of 69 tenders were issued, representing a combined capacity of 102 GWh. This reflects a 35% increase over 2024 and nearly doubles the number of tenders issued in the previous year. Notably, the tendered capacity in 2025 is almost equivalent to the cumulative capacity issued between 2018 and 2024. Commissioned capacity during 2025 reached 0.5 GWh.
The India BESS market is currently in a high-growth phase, transitioning from small-scale lead-acid systems to large-scale lithium-ion-based deployments. Historically, energy storage adoption was largely confined to residential and small commercial applications using lead-acid batteries for Uninterruptible Power Supply (UPS) systems. Today, the focus is shifting decisively toward grid-scale and industrial BESS installations, aimed at improving energy efficiency, grid reliability, and system flexibility. The total investment opportunity for energy storage in India is estimated to reach USD 120–130 billion by 2030, highlighting the scale of capital required for grid modernization.
The Role of Energy Storage in India’s Path to 500 GW of Renewables
India is among the fastest-growing renewable energy markets globally, driven by ambitious decarbonization goals and rapid economic expansion. However, balancing economic growth with environmental sustainability remains a challenge. A key technical barrier to scaling solar and wind power is the intermittent nature of these resources. Ensuring reliable electricity supply requires targeted policy interventions and large-scale deployment of energy storage solutions.
Battery Energy Storage Systems (BESS) have evolved from localized pilot projects into a national strategic priority. Beyond backup power, BESS is increasingly recognized as a critical grid asset, providing ancillary services such as peak shaving, frequency regulation, and energy time-shifting.
The importance of BESS is closely tied to the Government of India’s goal of achieving 500 GW of installed non-fossil fuel capacity by 2030. Addressing the “duck curve” challenge—characterized by high daytime solar generation and steep evening demand ramps—will require a substantial expansion of storage capacity. As a result, annual battery demand in India is expected to surge from just 3 GWh in 2020 to over 260 GWh by 2030. This report evaluates the technological, economic, and regulatory factors shaping the future trajectory of India’s energy storage market.
Report Highlights
- Lithium-ion batteries dominate the market, accounting for 78.4% of total BESS installations, supported by falling costs and high efficiency.
- On-grid installations hold the largest share (84.7%), driven by utility-scale projects, while off-grid and behind-the-meter segments are emerging growth areas.
- Mid-sized systems (100–500 MWh) represent a significant share of deployments, aligned with the rise of standalone and hybrid storage tenders.
- Government incentives, including Viability Gap Funding (VGF) and Production Linked Incentive (PLI) schemes, have significantly improved project economics and accelerated investment in domestic manufacturing.
- The Central Electricity Authority (CEA) estimates that India will require 336–411 GWh of storage capacity by 2030–2032 to ensure grid stability and support renewable energy growth.
 market was valued at USD 1.59 billion in 2025 and is projected to reach USD 20.37 billion by 2035.){kind=link}