India’s Battery Storage Push: Bridging Import Gaps

Industry stakeholders in India are urgently calling for a swift expansion of energy storage systems, particularly battery storage, to complement the nation’s increasing renewable energy capacity.

Key Storage Capacity Figures

• India’s domestic battery manufacturing capacity stands at a mere 2 GWh.
• The anticipated demand pipeline from competitive tenders in 2026 is approximately 260 GWh.
• Domestic manufacturing accounts for less than 1% of this projected demand.
• NTPC has been allocated 5 GWh of battery energy storage capacity under a Viability Gap Funding scheme.

Battery energy storage systems (BESS) and pumped storage projects are critical for India to meet its rising electricity demand and effectively balance solar generation with peak demand, as stated by Hanish Gupta, founder and MD of Sunkind India. Vinay Rustagi, Chief Business Officer at Premier Energies, confirmed that storage technologies are essential for mitigating the intermittency inherent in solar power and unlocking its full growth potential.

Addressing the Supply-Demand Imbalance

Piyush Goyal, CEO and co-founder of Volks Energie, highlighted that India’s storage demand significantly outstrips its domestic cell manufacturing supply, a gap projected to take years to close. He emphasized that delaying deployment for a decade until cells are fully indigenous is not a feasible choice, as the grid requires immediate storage to firm up the added renewable capacity.

Storage systems enable renewable energy generated during the day to be stored and then utilized when sunlight is unavailable, as noted by NTPC Chairman Gurdeep Singh. This optimization supports existing thermal infrastructure and ensures a reliable power supply during non-solar hours.

Long-Term Self-Sufficiency Challenges

Recent research from Wood Mackenzie indicates that India is expected to take over a decade to achieve self-sufficiency in battery storage. This timeline is due to the vast disparity between demand and manufacturing capability for essential battery cell components, creating a structural reliance on imports.

As of 2026, India’s commissioned cell manufacturing capacity of 2 GWh starkly contrasts with China’s cumulative capacity of 2,695 GWh. China currently dominates 85-98% of the global supply chain for crucial battery components, underscoring the scale of India’s challenge.