Wiring the Future: India’s Battery Storage Marathon

Wiring the Future: India’s Battery Storage Marathon

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Image Credits: Institute for Energy Economics and Financial Analysis (IEEFA)

India’s clean energy journey is gathering pace, but its durability rests on solving a critical challenge. Much like a marathon runner who starts strong but falters when fatigue sets in, renewable energy, too, slows when the sun sets or the wind dies. The missing link is storing the energy pack strapped to the runner's back, keeping momentum steady, and ensuring the finish line is within reach. This once abstract idea is now central to India’s energy future.

Between 2022 and May 2025, India recorded sales of roughly 128 GWh of battery energy storage capacity, according to the Institute of Energy Economics and Financial Analysis. Yet, a large part of this capacity remains in the pipeline, underscoring how critical execution will be. To achieve its target of 500 GW of non-fossil capacity by 2030, the Central Electricity Authority projects the country will require over 400 GWh of storage by 2031- 32, more than half of it from battery systems.

Recognizing the urgency, policymakers have unleashed powerful incentives. These include a ₹91 billion viability gap funding scheme, production-linked incentives for advanced battery manufacturing, and an energy storage obligation climbing to 4% by 2030. Hybrid renewable tenders featuring storage have already risen from 12% in 2021 to nearly 50% in 2024, a striking indication of market momentum.

Amid the backdrop, five companies are emerging as pivotal forces in India’s storage revolution. These firms combine manufacturing heft, utility scale execution, and EPC expertise, positioning themselves as critical enablers of round the clock clean power.

• Exide Industries is evolving from a conventional lead-acid giant into a full-spectrum storage solutions provider. It has launched containerised BESS projects in the commercial and industrial segment and is investing ₹3,602 crore in a 12 GWh lithium-ion cell plant in Bengaluru. Its tie-up with SVOLT in Gujarat and robust recycling capabilities strengthen its dual-chemistry strategy.
• Amara Raja Energy & Mobility is scaling its New Energy division with lithium backup packs, a 1 GWh gigafactory, and investments in R&D, training, and recycling, sharpening its sustainability credentials.
• Tata Power is embedding storage into its renewable and distribution portfolio from pumped hydro projects to rooftop solar with batteries backed by an annual capex plan of ₹25,000 crore.
• JSW Energy has secured 29.4 GWh of storage capacity across pumped hydro and BESS, with a 5 GWh assembly facility underway in Pune, and is locking in long-term power purchase agreements.
• Sterling & Wilson Renewable Energy is pivoting beyond solar EPC to hybrid and BESS projects, anticipating rising revenue streams from mandatory storage-linked tenders.

Investor enthusiasm is evident in the valuations of these firms, which trade well above historical averages, reflecting the sector’s promise but also signaling caution. Battery storage is no longer an ancillary concept; it is the linchpin of India’s clean energy reliability. The coming years will test not just ambition but execution. The companies that can deliver scale efficiently and on schedule will define the trajectory of India’s energy transition and reward investors who bet wisely