A significant transformation is underway in India's power sector, as battery energy storage systems (BESS) move from the periphery to the core of the nation's clean energy strategy. Driven by rapidly falling costs and robust government policy, this shift has ignited a fresh wave of capital expenditure, with projections indicating investments could reach a staggering ₹1.4 trillion by 2030. Major industrial conglomerates including Reliance Industries, Adani Green Energy, JSW Energy, and Waaree Energies are leading the charge, betting big on large-scale storage to stabilize the grid and support India's ambitious solar and wind expansion.
The Price Trigger and Policy Push
The surge in investor confidence is primarily fueled by a dramatic reduction in battery costs. According to credit rating agency ICRA, battery prices dropped below $100 per kilowatt-hour (kWh) in 2025, a sharp decline from nearly $200 in 2019. This cost plunge has accelerated the adoption of battery storage at the grid level globally, with an estimated 610 GWh of BESS capacity installed worldwide in 2025—a 68% year-on-year increase.
However, in India, the journey is just beginning. The Central Electricity Authority (CEA) estimates the country's cumulative BESS capacity stood at a modest around 0.5 GWh as of June 2025. To put this in perspective, 1 GWh can power approximately 10,000 average Indian homes for a month. While ICRA notes that current costs still challenge the commercial viability of many projects, the expectation of further price reductions is set to improve economics over the coming decade.
Complementing the price trend is a strong policy framework from New Delhi. The government is implementing a ₹5,400-crore viability gap funding (VGF) scheme to support 30 GWh of BESS capacity, designed to attract private investments of about ₹33,000 crore. This builds on an earlier program. Furthermore, the CEA has mandated a minimum of two-hour co-located energy storage for future solar tenders, making storage integral to new renewable projects.
"Battery energy storage is no longer an ancillary to renewable generation in India—it is becoming core grid infrastructure," stated Deepto Roy, partner at Shardul Amarchand Mangaldas & Co. He emphasized that India's renewable targets cannot be met by generation alone, and large-scale BESS deployment is now indispensable.
Big-Ticket Investors and Their Strategies
The investment plans of India's corporate giants reveal diverse strategies to capture this emerging market.
Reliance Industries has outlined one of the most ambitious, integrated plans. It aims to establish a 40 GWh battery cell plant by early 2026, with a medium-term goal of scaling to 100 GWh. Analysts at Motilal Oswal highlight Reliance's advantage in scale and integrated ecosystem. Initially, output will cater to captive BESS projects at its massive renewable energy complex in Jamnagar, Gujarat, before venturing into third-party sales.
Waaree Energies, a leading solar player, is investing over ₹10,000 crore to build 20 GWh of integrated battery cell and pack manufacturing capacity. Unlike Reliance, Waaree's focus will be on supplying storage systems to external renewable energy developers. Its first phase of 3.5 GWh is already under construction.
The Adani Group is focusing on large-scale deployment rather than manufacturing. It is developing India's largest BESS project—a 3.5 GWh installation at Khavda—scheduled for completion by March 2026. The group plans to scale its storage capacity to 15 GWh by March 2027 and 50 GWh by 2030, procuring battery systems from external suppliers.
JSW Energy is setting up a 5 GWh battery assembly facility in Pune, sourcing cells externally. The company targets 40 GWh of energy storage capacity by 2030, though a significant portion will come from pumped storage plants (PSP), a different storage technology, alongside BESS. Adani Green is also investing in PSP projects.
Why Storage is Critical for India's Energy Future
BESS addresses the fundamental challenge of intermittency in renewable energy. These systems use large arrays of battery packs to store electricity from solar and wind, releasing it when generation is low to ensure a smooth, reliable power supply. This capability is crucial for India to increase its clean energy share, meet climate commitments, and reduce dependence on coal.
The scale of future need is immense. The CEA projects India will require 34.7 GWh of BESS capacity by the end of FY27 and a massive 411.4 GWh of total energy storage by FY32, with BESS contributing 236.2 GWh of that target. Analysts at Motilal Oswal believe even these projections may be conservative. They argue that the estimates do not account for India's potential role as a global battery export hub or emerging use cases like integrating BESS with thermal power plants.
"Overall, we believe BESS demand has the potential to far exceed CEA’s initial estimated FY32 target of 236 GWh," the brokerage firm noted. This sentiment underscores the view that the current investment cycle in battery storage represents the next major phase in the evolution of India's power sector, unlocking not only energy security but also a new frontier for industrial growth.
