India's battery storage demand to hit 236.22 GWh by FY32, require Rs 3.49
Benchmarks Nifty23,146.15148.81FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.64 % Invest NowEnter search…
India's battery energy storage system market is expected to reach 236.22 GWh by FY2031-32. The country will require Rs 3.49 trillion in investments for this growth. Significant advancements in BESS deployment were noted between early and mid-2026. The government is providing extensive support through various initiatives and schemes. These measures aim to enhance project viability and stimulate private-sector participation in the energy storage sector.
Listen to this article in summarized format
Loading...×New Delhi: India's battery energy storage system (BESS) requirement is projected to surge nearly seven-fold to 236.22 GWh by FY2031-32, requiring investments of up to Rs 3.49 trillion, according to a Rubix Data Sciences report.The country witnessed a sharp acceleration in BESS deployment in 2026, with 8.2 GWh of capacity added between January and June, compared with less than 100 MWh in the same period of 2025, it noted.
Furthermore, as of August 2026, 9.08 GWh of BESS capacity was operational, while 79.92 GWh was under construction, with 79.92 GWh under construction, 24.13 GWh awarded, and 63.53 GWh under tendering, taking the total operational and identified project capacity to 176.66 GWh, with the current CEA project pipeline scheduled for commissioning till FY2029-30.
In capacity terms, the report noted, this represents approximately "75% of the NEP's projected FY2031-32 requirements, although the identified capacity is at different stages of development and is not yet fully operational."
"The share of BESS in India's total energy storage requirement is expected to increase from ~42% in FY2026-27 to ~57% in FY2031-32," it said.
Live Events
The report estimated that India will require around Rs 3.49 trillion in investment in the sector by FY2031-32. Separately, the broader energy storage sector is expected to attract about Rs 4.79 trillion in investments by 2032.
The report expects India's BESS market to expand strongly, supported by investments in domestic battery manufacturing, a sizeable project pipeline and government initiatives. Measures including Viability Gap Funding (VGF), the National Programme on Advanced Chemistry Cell (ACC) Battery Storage and interstate transmission system (ISTS) charge waivers are expected to improve project viability and encourage private-sector participation.
The government is also stepping up support for the sector. The Union Cabinet has approved the Rs 1.86 trillion PM-DHARA (PM-Developing Harmonized and Accelerated Renewable-energy Access) Scheme, which includes Rs 500 billion for the deployment of 50 GWh of BESS capacity by FY2032-33, it noted.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onIndia battery storage demandBESS investmentbattery energy storage systemRubix Data Sciences reportenergy storage sector growthGWh capacitymanufacturing investment in batteries
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onIndia battery storage demandBESS investmentbattery energy storage systemRubix Data Sciences reportenergy storage sector growthGWh capacitymanufacturing investment in batteries
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessStories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
