India's energy storage sector has achieved significant milestones with 7.5 GWh of energy storage capacity commissioned and over 140 GWh under construction, awarded or under tendering, as announced by Shripad Yesso Naik, Minister of State for Power and New & Renewable Energy. Speaking at an industry event, Naik emphasized that "if we are to build a truly flexible grid, deployment must accelerate further because the requirement is no longer measured only in gigawatts. It is measured in our ability to respond instantly to changing system conditions." The minister highlighted a fundamental shift in India's energy challenges, noting that "for many years, India's biggest concern was whether we could generate enough electricity but the challenge today is to deliver the right electricity at the right time, and at the right place." The government has introduced comprehensive policy support including viability gap funding for standalone Battery Energy Storage System (BESS), support through the Power System Development Fund, waiver of Inter State Transmission Charges, integration of storage with renewable energy projects, and the 50 GWh Advanced Chemistry Cell PLI scheme including dedicated capacity for stationary storage.
India's energy storage requirements are being accelerated by a dramatic surge in electricity consumption, with peak power demand expected to reach 300 GW in FY27, up from an estimated 272 GW this year. Power Minister Manohar Lal announced at the 12th India Energy Storage Week (IESW) 2026 that the country has already recorded peak demand of about 271 GW this year, while available generation capacity has risen to 284 GW. The minister emphasized that rising electricity consumption from data centres, AI and electric vehicles is driving this unprecedented demand growth, making energy storage critical for ensuring power availability whenever and wherever it's needed. This surge in demand underscores the urgent need for the 888 gigawatt hours (GWh) of energy storage system capacity that India will require by 2035-36, as estimated in the latest India BESS Market Review released on Wednesday.
Minister Naik outlined significant opportunities for India to become a comprehensive manufacturing hub for the complete energy storage ecosystem. The government has identified opportunities for India to become a manufacturing hub for the complete ecosystem comprising battery management systems, energy management systems, power conversion systems, thermal management, fire safety systems, battery recycling, power electronics, and advanced software that will increasingly become the intelligence behind the future grid. Vijay Mittal, joint secretary, Ministry of Heavy Industries, announced the intent to expand policy support for battery recycling, further strengthening the ecosystem. India's manufacturing momentum is already accelerating, with current Li-ion battery cell manufacturing capacity at around 2 GWh and announced targets of approximately 110 GWh by 2030. Cell/pack to container capacity is expected to reach 180-200 GWh by 2030, positioning India as a global manufacturing hub for energy storage solutions.
India's battery storage market is experiencing explosive growth as the country transitions from solar and wind capacity building to energy storage solutions. According to the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES), India will require 888 gigawatt hours (GWh) of energy storage system capacity by 2035-36, representing a dramatic increase from just 1 GWh currently. The government has provided strong policy backing through viability gap funding for grid-scale BESS, extended transmission charge waivers for eligible storage projects, and mandated at least 2 hours of energy storage alongside new renewable energy projects. This policy framework has created one of the world's fastest-growing storage markets, with India's BESS market expected to expand from around 1.1 GWh in 2025 to 888 GWh by 2035-36. The market acceleration is evident with installed BESS capacity increasing 11-fold in just six months from 0.78 GWh in December 2025 to 8.7 GWh in H1 2026.
Waaree Energies has positioned itself as India's largest solar module manufacturer and leading solar retail brand, accounting for nearly one in every six solar installations across the country. The company operates a 25.8 GW module manufacturing capacity and is currently undergoing a strategic transformation called ''''''''Waaree Unbound 2.0'''''''' to become a fully integrated energy transition ecosystem. The company is building India's first fully integrated Advanced Cell Chemistry cell-and-pack gigafactory in Gujarat with a ₹10,000 crore investment, targeting 20 GWh BESS capacity by FY28. Management expects the BESS business to generate healthy margins of 18-20% based on current market conditions, while the company reported strong FY26 financials with net profit doubling to ₹3,884 crore and an order book of approximately ₹53,000 crore.
Pace Digitek operates as an end-to-end integrated infrastructure platform serving energy and telecom sectors, with manufacturing capabilities spanning Lithium-Ion batteries, containerized BESS, and energy management systems. The company currently operates 2.5 GWh BESS capacity at its Bidadi facility in Karnataka with 80% capacity utilization in FY26. Pace is rapidly expanding to 10 GWh capacity by October 2026, with in-house container fabrication facilities expected to save approximately 30% on import overheads and improve operating efficiencies by 4-5%. The company's energy and BESS segment constitutes 78.1% of its total order book worth ₹8,855 crore, with management targeting ₹3,200-3,400 crore revenue in FY27 and ₹4,000-4,200 crore in FY28.
