In Short : With bids for 6.1 GWh of standalone and hybrid systems announced in just the first quarter of 2025, India is quickly increasing the volume of battery storage auctions. But as of right now, just about 219 MWh are in use, underscoring the widening discrepancies between capacity and delivery.
Increased Tenders and Slower Execution
As a result of regulations like the Viability Gap Funding (VGF) plan, India has aggressively held auctions for both standalone and hybrid storage projects. The operational pipeline is still thin despite considerable interest and tender volumes, indicating difficulties with project delivery and execution.
Momentum-Driven Policy Support
Project economic feasibility has been significantly enhanced by government incentives such as the VGF program, transmission price waivers, and Production-Linked Incentives (PLI) for battery production. Mandates such as energy storage requirements for utilities and two-hour on-site storage for solar projects further demonstrate the growing regulatory support for storage implementation.
Risks in Execution Could Stop Growth
Even while the policy environment is supportive, a number of obstacles stand in the way of significant advancement. Project commissioning is being slowed by a number of factors, including underbidding in contracts, delays in establishing power purchase agreements, difficulties connecting to the grid, financial issues, and reliance on foreign batteries. These limitations could prevent the timely deployment of vital storage facilities if they are not addressed.
Impact and Significance of Clean Energy
Battery storage is essential for controlling variable renewable energy sources, such as wind and solar, in order to prevent the notorious “duck curve” and guarantee clean electricity all day, every day. Battery storage will be essential to the energy transition if India can successfully scale deployment and overcome execution obstacles. This would boost grid reliability, lower curtailment, and speed up decarbonization in all sectors.
