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India's 500-GW Renewables Goal Dependent on Energy Storage Deployment, Report Says

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India is seeking to install 500 gigawatts of renewable power generation capacity by 2030, a target that will depend heavily on its ability to incorporate energy storage along with it, a joint report by JMK Research and Analytics and the Institute for Energy Economics and Financial Analysis said on Tuesday.

The country's tendered energy storage capacity jumped to 90.7 GW in 2025 from 6.8 GW in 2018. Standalone energy storage systems whose capacity is tendered out have become a dominant development route for power storage in the country, the report said.

They accounted for more than 71% of the total capacity tendered in 2025 with standalone battery energy storage or BESS making up 60% of this. That coincides with a fall in battery prices and supportive policy measures, the report authors said.

Of the 10.4 GW of standalone BESS capacity 'allocated' in 2025, the most popular was a 2-hour, 2-cycle configuration as it enables energy offtakers to address both morning and even peaks in demand in one day. The report says that the 4-hour segment has been growing too as it can better meet evening peak demand needs.

Tariff bids fell sharply in 2025, raising questions over viability. The lowest in the year was 148,000 rupees ($1,535) per megawatt per month for 2-hour systems versus an indicative benchmark of 230,000 rupees.

The report said that 75% of allocated 2-hour capacity is in a 'risky' category with a gap between tariffs and project costs while viable tariffs are more common among early-stage, smaller-scale procurements.

The issue will need attention through another look at procurement frameworks and the introduction of tariff-floors reflective of costs, the report said.

The report also looks at battery cost trends, developer capabilities and financing conditions and it says that implementation delays of up to 18 months may persist with challenges relating to financial closure, procurement and commissioning.

In some cases the cost pressures versus tariffs could lead to inferior asset quality or the outright cancellation of some projects, the report said.

India's reliance on lithium-ion batteries has exposed the energy storage sector to global supply chain shocks but the availability of alternatives is likely to lead to a more diversified mix in future to incorporate flow batteries and sodium-ion chemistries.

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