India Targets 74 GW of Battery Energy Storage by 2032

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September 4, 2025--Researched by Industrial Info Resources (Sugar Land, Texas)--The Indian government has announced a plan to build 74 gigawatts (GW) of battery energy storage system (BESS) capacity by 2032, a crucial step to support its clean energy transition. At present, India has only about 205 megawatts (MW), or 506 megawatt hours (MWh), of operational BESS capacity. However, the development pipeline is expanding rapidly, with 3.3 GW of projects expected to deliver nearly 8.5 GWh by 2027. This scale-up is vital to balance the growing share of renewable power in the grid and ensure reliable supply.

To speed up adoption, the government has introduced strong policy measures. Waivers on interstate transmission charges for co-located battery and pumped hydro projects have been extended until June 2028. Under the Viability Gap Funding (VGF) program, India is investing 94 billion rupees (US$1.1 billion) to support up to 4 GWh of BESS. The program offers up to 40% project support, requires the use of indigenous energy management software and bans refurbished battery cells. In 2024 alone, 13,220 MWh of BESS capacity was allocated under VGF, and nine projects totaling 204.5 MW became operational.

On the economics side, storage is becoming more attractive. The levelized cost of 2-hour battery storage has fallen by 80% since 2015, reaching about 1.7 million rupees per MWh in 2024. At the same time, potential revenues in the Day-Ahead Market rose to 2.4 million rupees/MWh, making merchant BESS projects viable with returns of up to a 24% internal rate of return. Together, these factors position energy storage as a cornerstone of India's renewable energy future.

Industrial Info is tracking 152 battery storage projects in India, worth US$42.6 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed project reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).