India is gearing up to meet an estimated sixfold surge in battery storage demand by 2047, driven by the expansion of electric vehicles (EVs), battery energy storage systems (BESS), and the growing needs of sectors like data centers. This ambitious plan aims to achieve a cumulative battery energy storage capacity of nearly 3 terawatt-hours (TWh) by 2047 across electric mobility, power, and electronic components.
The Ministry of New and Renewable Energy (MNRE) had earlier projected a demand of about 2.3 TWh, comprising 540 GWh from pumped-storage plants and 1,840 GWh from battery energy storage services. As of June 2025, India's energy storage capacity stood at 490 MWh. The new plan signifies a substantial increase in capacity over the next two decades.
India is targeting 1,800 GW of renewable energy capacity by 2047, aligning with its 'Viksit Bharat@2047' vision. The government is also aiming for 500 GW by 2030, with significant growth already achieved, demonstrated by an almost 200% increase in installed capacity from 2014 to the present. To achieve these goals, the country is focusing on rapidly tendering renewable energy (RE) and storage capacities. The Central Electricity Authority (CEA) estimates that 411.4 GWh of energy storage will be needed by 2031-32, including 236.2 GWh from BESS and 175.2 GWh from pumped-hydro storage plants.
Several factors are driving the increased need for battery storage. The increasing supply of solar power during the day and the sharp drop in the evening, while electricity demand remains steady, underscores the need for storage systems. Battery storage is crucial for ensuring round-the-clock availability of power, stabilizing the grid, and empowering industries and communities.
The Indian government is actively supporting the growth of energy storage capacities through various policies and incentives. These include a ₹91 billion (US$1.09 billion) viability gap funding (VGF) support for 43.2 GWh of BESS capacity, a waiver of inter-state transmission charges for BESS projects commissioned on or before June 30, 2028, and a Production-Linked Incentive (PLI) program to support the manufacturing of 50 GWh Advanced Chemistry Cell (ACC) batteries with a budgeted outlay of ₹181 billion (US$2,181 million). Furthermore, the government has issued an advisory to co-locate a minimum of two-hour battery storage with solar projects and has stipulated an energy storage obligation, applicable to entities like distribution utilities, that will gradually increase from 1% in 2023-24 to 4% by 2029-30.
India has already made significant strides in ramping up solar manufacturing capacities. As of July 2025, the country has 91 GW of solar module manufacturing registered under the Approved List of Models and Manufacturers, with another 10 to 15 GW in the pipeline. Solar cell manufacturing has reached 25 GW, with another 25 GW in the pipeline, while wind turbine manufacturing stands at 18 GW.
Challenges remain in the deployment of BESS, including concerns of underbidding, delays in power purchase agreements and transmission interconnection, and high financing costs. However, the next few years are expected to be transformative for India's BESS market. With falling costs, robust policies, and strong industry interest, India is poised to become one of the largest markets for energy storage globally. Key developments to watch include the scaling up of domestic battery gigafactories, growth of renewable-plus-storage hybrid projects, deployment of grid-scale projects in states with high renewable penetration, and expansion of EV charging infrastructure supported by storage.
