India’s battery energy storage system (BESS) is witnessing growing momentum as storage assumes a larger role in supporting renewable energy integration and grid reliability. According to the Central Electricity Authority’s (CEA) National Generation Adequacy Plan, India’s energy storage requirement is projected to reach 174 GW by 2035-36, including around 80 GW of battery storage capacity. Activity across standalone BESS, renewable energy-plus-storage (RE+ESS) and firm and despatchable renewable energy (FDRE) segments has remained robust, supported by continued tendering, auction activity and regulatory developments. The market is also moving towards greater on-ground deployment, with several large-scale storage projects entering commercial operation. These include IndiGrid’s 360 MWh BESS project in Gujarat, Adani Green Energy’s 3.37 GWh storage capacity at Khavda and ACME Solar Holdings’ nearly 1,000 MWh of storage capacity in Rajasthan.
The latest Battery Energy Storage Monitor report by India Infrastructure Research tracks key developments in India’s storage market, including project pipelines, tenders, auctions, tariff trends, state-wise distribution, developer participation and recent developments. This article presents a snapshot of the market from February to May 2026.
Market overview
India’s battery storage market continues to witness increasing activity across the standalone BESS, FDRE and RE+ESS segments, although a large share of the pipeline remains under bidding and awarded stages. As of May 2026, India Infrastructure Research has tracked over 29,000 MWh of standalone BESS capacity under bidding. The awarded standalone BESS capacity has crossed 35,000 MWh, while more than 2,000 MWh is currently under construction. Operational standalone BESS capacity has exceeded 4,700 MWh. In the FDRE and RE+ESS segments, over 4,500 MW of capacity remains under bidding, while awarded capacity exceeds 17,000 MW. Around 9,400 MW is currently under construction, and operational capacity stands at approximately 630 MW.
At the state level, as of May 2026, Rajasthan hosts the highest number of tracked projects, accounting for around 13 per cent of the total tracked project pipeline. Gujarat follows with a 9 per cent share, while Andhra Pradesh, Maharashtra, Bihar and Uttar Pradesh account for 5 per cent, 4 per cent, 3 per cent and 3 per cent respectively. Kerala and Tamil Nadu each contribute around 2 per cent of the tracked pipeline.
Tender and auction activity
India Infrastructure Research tracked 23 tenders and 14 auction outcomes from February to May 2026. February 2026 was the most active month for storage procurement, with six auction outcomes recorded. Around 3,070 MWh of standalone BESS capacity was auctioned by NTPC Vidyut Vyapar Nigam Limited, Gujarat Urja Vikas Nigam Limited, SJVN Limited and Tamil Nadu Green Energy Corporation Limited. In addition, the Solar Energy Corporation of India (SECI) concluded the auction for its 1,200 MW/4,800 MWh FDRE assured peak power project, while Karnataka Renewable Energy Development Limited awarded a 250 MW solar project integrated with 1,100 MWh of storage capacity. Seven new tenders were also issued during the month.
March 2026 witnessed an auction of around 4,414 MWh of standalone BESS capacity through projects awarded by SECI, Telangana Power Generation Corporation Limited, NTPC Limited and CESC. Limited FDRE or RE+ESS auctions were recorded during the month. April 2026 saw a slowdown, with no auction activity reported across the standalone BESS, FDRE or RE+ESS segments, although tendering activity continued.
Market momentum recovered in May 2026, with around 3,000 MWh of standalone BESS capacity auctioned through procurements by Uttar Pradesh Power Corporation Limited, Punjab State Power Corporation Limited and the Damodar Valley Corporation. In addition, SECI concluded the auction of a 10 MW solar project integrated with 20 MWh of battery storage. During the month, seven large-scale storage tenders were also floated by NTPC Green Energy Limited, MP Power Management Company Limited, Gujarat Industries Power Company Limited and Power Grid Corporation of India Limited.
Tariff trends
In the standalone BESS segment, the lowest discovered (L1) tariff for two-hour storage projects stands at Rs 148,000 per MW per month, while the L1 tariff for four-hour projects stands at Rs 285,000 per MW per month. In the FDRE segment, L1 tariffs have ranged from Rs 4.25 per kWh to Rs 6.74 per kWh. Variations in tariff outcomes have largely been influenced by storage duration requirements, peak power obligations, despatch commitments and tender-specific design parameters. Meanwhile, L1 tariffs in RE+ESS auctions have ranged between Rs 2.60 per kWh and Rs 3.52 per kWh.
Player landscape
ACME, Hero Future Energies, NTPC and JSW have emerged as key participants across the standalone BESS, RE+ESS and FDRE segments. Juniper Green Energy, Serentica and Hexa Climate have primarily focused on FDRE opportunities, while HG Infra and IndiGrid have established a stronger presence in standalone storage projects. The growing participation of both established renewable energy developers and newer storage-focused companies indicates increasing confidence in the sector. In addition, the market is witnessing greater involvement from infrastructure developers, engineering companies and transmission utilities as storage becomes an integral part of India’s energy transition strategy.
Outlook
Overall, India’s battery storage market continues to move towards larger-scale deployment, supported by growing procurement activity across the standalone BESS, FDRE and RE+ESS segments. Policy support has also strengthened during recent months, with the Bureau of Indian Standards introducing rated-capacity verification requirements for lithium cells and batteries, the CEA issuing dedicated safety regulations for BESS installations, and the Central Electricity Regulatory Commission proposing new deviation settlement mechanism regulations covering renewable energy and storage projects. In addition, tariff approvals by state regulators and new operational guidelines for storage deployment are helping provide greater regulatory clarity to the market.
While the battery storage market continues to gain momentum, certain risks could affect its growth trajectory. Around 5,300 MWh of standalone BESS capacity and nearly 2,800 MW of FDRE and RE+ESS capacity currently stands cancelled, highlighting execution risks within the sector. In addition, concerns have been raised regarding aggressive bidding practices, which could affect project viability and long-term sustainability. Further, potential increases in battery prices arising from global supply chain disruptions and raw material volatility may place upward pressure on future project costs. Going forward, timely project execution, balanced tariff discovery and continued policy support will be critical for translating the big project pipeline into operational capacity.
