India's energy storage requirement set to jump from 1 GWh to 888 GWh by 2035-36: Report
- IBEF
- July 9, 2026
India's energy storage sector is poised for rapid expansion, with the country's energy storage system (ESS) requirement projected to increase from the current 1 GWh to 888 GWh by 2035-36, according to the India BESS Market Review released by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES) during India Energy Storage Week 2026. The report highlights the growing importance of battery energy storage systems (BESS) in strengthening grid reliability, supporting renewable energy integration and advancing India's clean energy transition. Installed BESS capacity increased more than 11-fold from 0.78 GWh in December 2025 to 8.70 GWh in the first half of 2026 and is expected to exceed 10 GWh by the end of the year. During H1 2026, 47 GWh of ESS tenders were floated, taking the total tender pipeline to 260 GWh, reflecting strong policy support and increasing investments in the sector.
India's domestic battery manufacturing ecosystem is also gaining momentum, with lithium-ion cell manufacturing capacity currently at around 2 GWh and planned expansion to approximately 110 GWh by 2030. Cell and battery pack-to-container manufacturing capacity is expected to reach 180-200 GWh by 2030, strengthening domestic value chains and supporting the country's clean energy ambitions. Eighteen BESS projects have already been commissioned, with nearly 70% of capacity additions during H1 2026 coming from merchant BESS installations. The report noted that despite global supply chain disruptions and rising battery prices, India's energy storage market has demonstrated strong resilience and is emerging as one of the world's fastest-growing markets. Continued investments in energy storage infrastructure are expected to enhance grid flexibility, improve energy security, accelerate renewable energy deployment and support India's long-term net-zero and sustainable development objectives.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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