IESA Report Projects India’s C&I Energy Storage Market to Reach Up to 31 GWh by 2032

The India Energy Storage Alliance (IESA), in collaboration with Customized Energy Solutions (CES), will unveil its latest report, “India Stationary Storage Market for C&I Applications: Insights Till 2032,” during the 12th India Energy Storage Week (IESW) 2026, scheduled to be held from July 8-10 at Yashobhoomi (IICC), New Delhi.

According to the report, cumulative energy storage system (ESS) installations across India’s commercial and industrial (C&I) sector are expected to witness substantial growth, increasing from less than 1 GWh in 2025 to between 23 GWh and 31 GWh by 2032. The projected expansion represents more than a 30-fold increase over the forecast period.

The study attributes this growth to rising electricity tariffs, increasing demand for reliable and high-quality power supply, accelerated renewable energy adoption, growing focus on operational cost optimization, and India’s long-term decarbonization objectives.

IESW 2026, regarded as one of the leading platforms for clean energy transition, is expected to bring together stakeholders from across the e-mobility, battery manufacturing, recycling, stationary energy storage, and green hydrogen sectors. The event is anticipated to host over 200 exhibitors and more than 10,000 industry professionals from over 30 countries, facilitating industry collaboration, policy discussions, and technology exchange.

Commenting on the findings, Debmalya Sen, President of IESA, said the C&I energy storage sector is entering a transformative phase where storage solutions are evolving beyond backup power and peak shaving applications to become strategic assets for energy optimization, resilience, and decarbonization.

The report outlines two potential growth pathways for the market. Under the Business-as-Usual (BAU) scenario, ESS deployments are projected to reach 22–23 GWh by 2032, supported by annual C&I electricity demand growth of 5–6% and a renewable energy CAGR of 15%. Under the Rapid Adoption (RA) scenario, installations could expand to 31 GWh, driven by favorable policy measures, accelerated renewable energy deployment at an 18% CAGR, and declining battery costs.

Vinayak Walimbe, Managing Director of CES, noted that improved regulatory clarity, maturing business models, and advancements in storage technologies are enabling commercial and industrial consumers to make informed energy investment decisions that support both cost reduction and sustainability goals.

The report provides a detailed assessment of various energy storage technologies, including lead-acid, advanced lead-acid, lithium-ion, vanadium-redox flow batteries (VRFB), sodium-ion batteries, and pumped hydro storage. Technology-specific analysis focuses on lithium iron phosphate (LFP), nickel manganese cobalt (NMC), VRFB, and sodium-ion battery chemistries.

Among the technologies evaluated, LFP batteries currently dominate the market, while vanadium-redox flow and sodium-ion batteries are emerging as promising solutions for long-duration energy storage applications. The report also highlights a growing transition from backup-focused systems toward application-specific battery energy storage solutions designed for open-access renewable energy projects, diesel generator replacement, and rooftop solar integration.

In addition, the study presents several case studies, including battery energy storage deployment for diesel generator optimization at an industrial facility, a solar-plus-storage project in Leh replacing diesel-based generation, and the Om Shanti Retreat Centre project in Gurugram.

The findings indicate that one-hour duration battery energy storage systems capable of handling average outage loads and operating with higher cycling frequencies can deliver superior payback periods compared to larger systems designed primarily for peak load support. The analysis also demonstrates that hybrid solar-plus-storage systems can effectively replace diesel generation, even in remote and off-grid locations, while improving project economics and energy reliability.

The report further offers scenario-based market forecasts, state-wise regulatory assessments, technology benchmarking, and strategic recommendations aimed at energy consumers, project developers, investors, and policymakers seeking to capitalize on India’s rapidly evolving energy storage sector.