India to call bids for grid-scale battery storage manufacturing by May
- IBEF
- April 7, 2026
India is set to invite bids by May 2026 for manufacturing grid-scale battery energy storage systems, marking a significant step towards strengthening its renewable energy infrastructure. The initiative, announced by Renewable Energy Secretary Mr. Santosh Sarangi, will focus on developing 10 GWh of domestic battery storage capacity under the Production Linked Incentive (PLI) scheme. This move is aimed at supporting India’s ambitious target of achieving 500 GW of renewable energy capacity by 2030, up from the current 267 GW. Grid-scale battery storage systems will play a crucial role in stabilising power supply by storing electricity during low demand and supplying it during peak hours, thereby addressing the variability of renewable energy generation.
The government is also implementing viability gap funding (VGF) schemes to support around 43 GWh of battery energy storage deployment, highlighting the scale of future demand. A sharp decline in battery prices from Rs. 10.18 per kWh in 2022-23 to about Rs. 2.1 per kWh in recent months has further improved the feasibility of large-scale storage adoption. Currently, India’s battery storage deployment remains limited at approximately 0.7 GWh, indicating vast growth potential. The Central Electricity Authority projects a requirement of 411 GWh of storage capacity by 2031-32, underscoring the urgency of domestic manufacturing expansion. These developments are expected to enhance grid reliability, support peak demand management (projected at 270 GW), and reduce dependence on fossil fuels while enabling a round-the-clock renewable energy supply.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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