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India will need to expand its battery energy storage system (BESS) capacity to 888 GWh by 2035-36 from the current level of around 1 GWh, according to a new industry report. The study highlights the growing role of energy storage in supporting renewable energy integration and improving grid reliability. Installed BESS capacity has risen sharply during the first half of 2026, while project tenders and manufacturing plans have also accelerated. Industry leaders said stronger domestic manufacturing and storage deployment will be critical to meeting India's long-term clean energy goals.
India will need 888 GWh of energy storage system (ESS) capacity by 2035-36, compared to the current level of around 1 GWh, according to an industry report released during India Energy Storage Week (IESW) 2026. The report highlighted that energy storage has become a critical component in strengthening grid reliability and supporting the country's expanding renewable energy capacity.
The 'India BESS Market Review', released by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES) during the opening session of IESW 2026, estimated that India's battery energy storage system (BESS) market will witness rapid expansion over the next decade. The event brought together industry delegates from 15 countries, reflecting growing global interest in India's energy storage sector.
IESA President Debmalya Sen said India's clean energy journey has reached a stage where energy storage is becoming central to future power infrastructure. He noted that the projected requirement of 888 GWh by 2035-36 reflects the increasing importance of storage systems in supporting renewable energy deployment and ensuring grid stability.
The three-day event, organised by IESA at Yashobhoomi (IICC) in New Delhi, has attracted more than 200 exhibitors and over 10,000 industry participants for policy discussions, technology showcases and industry announcements related to India's clean energy transition.
The report showed that India's installed BESS capacity increased more than eleven times within six months, rising from 0.78 GWh in December 2025 to 8.7 GWh during the first half of 2026. Based on the current pace of deployment, the country is expected to cross 10 GWh of installed BESS capacity by the end of 2026.
The study also noted that 47 GWh of ESS tenders were floated during the first half of 2026, taking the overall project tender pipeline to 260 GWh. A total of 18 BESS projects have been commissioned so far, with merchant BESS installations contributing nearly 70 per cent of the capacity additions recorded during the first six months of the year.
Radiance Renewables Chief Executive Officer Nitin Bhatia said the company believes that combining solar power with battery energy storage offers the most practical path for the country's energy transition. Tanya Singhal, Vice President and Country Head-India at the Global Energy Alliance for People and Planet, said storage systems should be integrated across power generation, transmission, distribution and consumption to build a more flexible and resilient electricity grid.
India's battery manufacturing ecosystem is also expanding alongside project development. The report stated that the country's existing lithium-ion battery cell manufacturing capacity stands at around 2 GWh, while announced manufacturing plans aim to increase this to nearly 110 GWh by 2030. Cell and battery pack-to-container manufacturing capacity is expected to reach between 180 GWh and 200 GWh by the same period.
Pace Digitek Chairman and Managing Director Venugopal Rao Maddisetty said energy storage has become essential national infrastructure as it enables renewable energy to be supplied when required, improves grid stability and strengthens energy security. Nikhil Bhuta, Director at DC&T (Belding India), said India should build a strong domestic storage manufacturing ecosystem and develop the complete value chain to improve long-term competitiveness.
The report also noted that despite global supply chain disruptions and higher battery prices in recent years, India's BESS sector has continued to expand steadily. The country has emerged as one of the fastest-growing energy storage markets, supported by increasing renewable energy capacity, government-backed storage tenders and a stronger focus on domestic battery manufacturing. These developments complement India's broader target of expanding non-fossil fuel power generation capacity while improving grid flexibility to support higher renewable energy penetration.
Source PTI
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