In July 2025, India witnessed a historic surge in energy storage procurement, with states tendering 8.1 GWh of battery capacity—the highest ever for a single month. The record-breaking growth reflects the country’s increasing demand for around-the-clock renewable power and peak load management
📉 Lowest-Ever Tariffs Discovered
- Competitive bidding brought down tariffs to a new low of ₹3.13 per unit for solar-plus-storage projects with four-hour discharge capacity.
- This marks a significant drop from ₹3.32 per unit recorded in earlier tenders with similar storage durations
🔋 Role of Viability Gap Funding (VGF)
- The Power Ministry’s new VGF scheme, offering support for up to 30 GWh in funded storage, is a key driver behind rising procurement.
- States like Rajasthan, Gujarat, and Maharashtra are leading their renewable push through tenders under this scheme
👥 Growth in Project Scale and Capacity
- Experts like Debmalya Sen (IESA) highlight both a rise in project volume and average size.
- Nearly a third of the 30 GWh VGF capacity was tendered in July alone, indicating strong market momentum
📊 Summary Table – July 2025 Snapshot
Metric | Value |
Energy Storage Tendered | 8.1 GWh (Monthly Record) |
Average Tariff Discovered | ₹3.13 per unit |
Project Duration | Four-hour solar + storage |
VGF-supported Capacity | Up to 30 GWh total scheme |
Leading States | Rajasthan, Gujarat, Maharashtra |
✅ Bottom Line
July 2025 marks a milestone for India’s energy transition—with a new high in state-level storage tenders and record-low project tariffs. Supported by the VGF mechanism, energy storage is quickly becoming an integral part of India’s grid strategy, promising reliability, reduced peak demand strain, and deeper renewable integration.
SOURCE : THE ECONOMIC TIMES
