Battery Energy Storage Powers ₹3.5 Trillion Investment Opportunity

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With policy support, rising EV adoption, and surging solar and wind power, India’s BESS capacity is set to hit 42 GW by FY32—transforming grid stability, cutting fossil fuel use, and powering round-the-clock renewable supply.

By S JHA

MUMBAI, September 14, 2025 — India’s renewable energy transition has entered a decisive phase—and battery energy storage systems (BESS) are emerging as the lynchpin of the country’s clean power ambitions. According to Raghav Wadhwa of Samarth Wealth, India’s BESS capacity is projected to expand 375 times—from just 0.1 GW in FY24 to 42 GW by FY32, creating a multi-trillion-rupee investment opportunity.

The logic is simple: as solar and wind generation multiply, the “duck curve” of midday oversupply and sharp evening deficits will strain the national grid. BESS offers the solution, storing surplus power during the day and releasing it when demand peaks. Beyond balancing demand and supply, storage reduces renewable curtailment, stabilizes frequency, defers costly transmission upgrades, and cuts fossil fuel dependence during peak hours.

India’s policy push has been aggressive. The government recently expanded its Viability Gap Funding scheme, allocating ₹5,400 crore for 30 GWh of BESS capacity, alongside an existing ₹3,700 crore incentive covering 13.2 GWh. “Together, these initiatives are expected to draw ₹33,000 crore in total investment. Add to this the PLI scheme for Advanced Cell Chemistry (55 GWh capacity) and Energy Storage Obligations (ESO) mandating that distribution companies procure renewable-linked storage, and the ecosystem has a strong regulatory tailwind,” wrote Wadhwa in a thread on X.

Industry projections are no less ambitious. Wadhwa highlights a ₹3.5 trillion funding opportunity by FY32 for the BESS sector, complemented by ₹800 billion in cell manufacturing capex and ₹1.2 trillion in pumped storage projects (PSPs). “The tender landscape has already shifted dramatically—while only 5% of renewable energy tenders included storage in FY20, that share rose to 23% by FY24,” he added.

Technology is keeping pace. From behind-the-meter systems that power households and small businesses to front-of-the-meter installations stabilizing utility grids, battery storage is becoming modular, scalable, and fast-responsive, with applications ranging from EV charging support to black-start capability for microgrids.

The implications for India’s energy future are profound. With renewable energy capacity set to rise 2.5x between FY24 and FY30, storage is no longer a choice but a necessity. “The 21st century belongs to clean energy, and BESS is the bridge that makes it reliable,” Wadhwa noted in his analysis.

As EV adoption accelerates and India positions itself as a global manufacturing hub, BESS could well become the backbone of the nation’s energy transition—turning policy incentives and investment flows into a long-term competitive edge.

Wadhwa mentioned that besides traditional battery companies, new players such as NTPC, Waaree Energies, Prostarm Info Systems Ltd, ACME Solar Holdings Ltd, Oriana Power Ltd, JSW Energy Ltd, Sterling & Wilson Renewable Energy Ltd, and others are key players in the emerging sector.

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