Indian Economy News

Battery energy storage capacity grows over four-fold to 219 MW in the first quarter of 2024: Report

  • IBEF
  • July 11, 2024

India's battery energy storage capacity surged more than four-fold to 219 MWh by March 2024, marking a significant increase from 47.6 MWh in March 2023, according to a report by Mercom Capital Group. This growth is underpinned by policy measures such as the deviation settlement mechanism, grid connectivity regulations, and ancillary services regulations to enhance renewable integration and grid stability. The Viability Gap Funding (VGF) program, with a budget of US$ 450.5 million (Rs. 37.6 billion), aims to install 4 GWh of battery energy storage systems (BESS), while energy storage obligations (ESO) and bidding guidelines for energy storage projects, both standalone and coupled with renewable energy, are contributing to a robust pipeline of projects.

Since India's initial foray into energy storage with pilot projects in 2013, cumulative installed capacity has reached 219.1 MWh as of March 2024, with 120 MWh added in the first quarter of the year. Solar photovoltaic systems integrated with BESS account for 90.6% of the total installed capacity. Despite the rapid growth in renewable energy, the development of energy storage infrastructure has been relatively slow, potentially leading to curtailment and grid stability challenges. Mercom Capital Group CEO Mr. Raj Prabhu stressed the imperative of prioritizing energy storage to support India's energy transition goals and effectively manage the rising penetration of intermittent renewable power sources.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.