The year 2025 marked a turning point for India’s clean energy sector, as the country moved from planning policies to executing large-scale projects across energy storage, electric mobility, and green hydrogen. According to the IESA Annual Report 2025, energy storage is no longer seen as an optional add-on but as a critical infrastructure asset that ensures grid stability and national energy security. This change is a key step toward India’s broader goals under “Vision 2030” and “Vision 2047,” which aim to create a self-reliant and competitive energy ecosystem.
Policy developments in 2025 provided a strong foundation for this growth. The Ministry of Power extended interstate transmission charge waivers for storage projects, making them more financially viable. In addition, a new financial support scheme for Battery Energy Storage Systems (BESS) was introduced, encouraging developers and investors to participate in the sector. Regulations mandating at least 20% local content in energy projects also highlighted the government’s push to strengthen domestic manufacturing and reduce reliance on imports. Alongside these national-level moves, state governments in Telangana, Bihar, and Madhya Pradesh implemented their own initiatives to support clean energy development, further creating a favorable environment for investment.
In the transportation sector, initiatives such as the PM E-DRIVE scheme and new battery swapping guidelines have accelerated the adoption of electric vehicles across India. The government also launched the National Critical Mineral Mission to secure raw materials essential for lithium-ion battery production. This initiative is expected to ensure the sustainability of the domestic battery manufacturing industry by reducing dependence on imports and stabilizing supply chains.
The green hydrogen sector also achieved significant milestones in 2025. A national certification scheme was introduced to set strict emission standards and ensure the environmental credibility of hydrogen produced in India. This step is seen as vital for promoting green hydrogen as a reliable, low-carbon fuel alternative for industrial use and transportation.
Looking ahead to 2026, the industry expects a shift from policy design to tangible results. Experts anticipate the commissioning of the first gigawatt-scale storage installations, signaling a major step toward large-scale energy storage adoption. Industry leaders emphasize that continued research and development, combined with low-cost financing, will be crucial to maintaining the momentum gained in 2025. If these conditions are met, India has the potential to move from being primarily a technology consumer to becoming a global hub for energy storage innovation.
The focus for the coming year will remain on removing operational hurdles, finalizing manufacturing incentives, and ensuring smooth project implementation. These efforts are expected to translate the progress made in 2025 into long-term energy independence for the country. With supportive policies, growing domestic capabilities, and increasing private sector participation, India is positioned to strengthen its clean energy infrastructure, promote sustainable transportation, and expand its green hydrogen industry, laying the foundation for a more resilient and self-reliant energy ecosystem.
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