India to Require 888 GWh of Energy Storage Capacity by 2035-36, IESA Report Finds

India will require 888 GWh of battery energy storage system (BESS) capacity by 2035-36, a significant increase from the current installed base of around 1 GWh, according to the latest India BESS Market Review released by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES) during the opening of India Energy Storage Week (IESW) 2026 in New Delhi.

The report identifies energy storage as a critical enabler of India’s renewable energy transition, highlighting its growing role in strengthening grid reliability, improving renewable energy integration, and supporting a more resilient power system.

Organised by IESA, the three-day India Energy Storage Week at Yashobhoomi (India International Convention and Expo Centre) in New Delhi has brought together more than 200 exhibitors, over 10,000 industry leaders, and delegates from 15 countries to discuss policy developments, technological advancements, and emerging opportunities in the energy storage sector.

According to the report, India’s installed BESS capacity expanded more than 11-fold within six months, increasing from 0.78 GWh in December 2025 to 8.7 GWh during H1 2026. The country is also expected to surpass 10 GWh of installed battery energy storage capacity by the end of 2026.

The study further noted that 47 GWh of energy storage system tenders were floated during the first half of 2026, taking India’s cumulative ESS tender pipeline to approximately 260 GWh, reflecting growing investment momentum in the sector.

The report also highlighted rapid progress in project deployment, with 18 battery energy storage projects commissioned to date. Around 70% of the capacity added during H1 2026 came from merchant BESS installations, indicating increasing private sector participation in the market.

India’s domestic battery manufacturing ecosystem is also gaining momentum. Current lithium-ion battery cell manufacturing capacity stands at approximately 2 GWh, while announced manufacturing plans are expected to increase capacity to around 110 GWh by 2030. Cell and battery pack-to-container manufacturing capacity is projected to reach between 180 GWh and 200 GWh by the end of the decade.

Speaking at the event, Debmalya Sen, President of IESA, said the projected requirement of 888 GWh marks a new phase in India’s clean energy journey, with energy storage becoming central to achieving a reliable and sustainable electricity system.

Nitin Bhatia, CEO of Radiance Renewables, said the combination of solar power and battery energy storage represents the future of India’s energy sector, adding that greater collaboration between industry stakeholders and policymakers would help improve battery affordability and policy consistency.

Tanya Singhal, Vice President and Country Head – India at the Global Energy Alliance for People and Planet, emphasized that storage must be integrated across generation, transmission, distribution, and consumption to build a flexible and resilient electricity grid capable of delivering renewable energy efficiently.

Meanwhile, Venugopal Rao Maddisetty, Chairman and Managing Director of Pace Digitek, described energy storage as critical national infrastructure that enables renewable energy to become dispatchable while enhancing grid stability and resilience. He added that the sector presents one of India’s largest industrial opportunities with the potential to establish the country as a global manufacturing hub for advanced energy storage technologies.

Nikhil Bhuta, Director at DC&T (Belding India), said energy storage is transforming renewable energy into dispatchable and bankable assets, highlighting the importance of developing domestic manufacturing capabilities across the battery value chain.

Despite global supply chain disruptions and rising battery prices, the report noted that India’s battery energy storage market has continued to demonstrate strong resilience, supported by expanding manufacturing capacity, favourable policy initiatives, and sustained tender activity. These factors are expected to accelerate the country’s transition toward a reliable, renewable-powered electricity system.