India's energy storage projects installation to surge 10-fold to 5GWh in 2026
- IBEF
- January 7, 2026
Installation of battery energy storage projects is set to increase almost tenfold in 2026 as India's energy storage landscape reaches an inflection point. According to the report from the India Energy Storage Alliance, the capacity addition of battery energy storage is expected to leap from approximately 507 MWh in 2025 to around 5 GWh in 2026. The rapid growth comes as several years of tendering have given way to a significant project execution pipeline. Many of the awards are progressing to commissioning, and several more are in advanced stages of execution. The strong pipeline reflects the swift transition from planning to operational delivery and demonstrates the confidence of investors and developers in India's renewable integration road map.
In this regard, the year 2026 will challenge the ability of the industry to translate this project momentum into concrete results. Key milestones include high-profile installations such as Adani’s large BESS project in Gujarat and Rajasthan’s solar-plus-BESS initiatives. Competitive pricing reshaped market dynamics as standalone 2-hour system tariffs dropped significantly over the past year. Government support added to that impetus-to-growth via schemes such as the Viability Gap Funding of Rs 5,400 crore (US$ 607.9 million) and interstate transmission charge waivers; at the same time, however, financing remained a challenge, more so for low-tariff bids. This surge in energy storage could prove pivotal for both meeting increased future demand and decarbonization goals as India integrates more renewable power and strengthens grid stability.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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