Energy Storage in India
Neuron Energy has announced plans to build a fully automated battery energy storage system (BESS) manufacturing facility in Talegaon, in the western Indian state of Maharashtra, marking its entry into the grid-scale storage segment. Once fully operational, it will have an annual production capacity of 5 GWh and the capability to produce up to 1,000 BESS units per year.
The government has notified the Central Electricity Authority (Measures relating to Safety and Electric Supply) Amendment Regulations, 2026, introducing a comprehensive safety framework for battery energy storage systems (BESS). The amendments expand the definitions under Regulation 2 to formally include “battery energy storage systems,” defined as stationary systems connected to the electricity network using electrochemical storage, along with key components such as battery management systems (BMS) and power conversion systems (PCS).
Cochin Shipyard Limited (CSL) and HBL Engineering Limited have signed a joint venture agreement covering the development and commercialisation of electric energy storage technologies for the maritime sector. The collaboration will focus on the development of marine batteries, Battery Management Systems (BMS), electric motors, power electronics and charging infrastructure. The joint venture aims to cater to the needs of both domestic and international markets, supporting the global transition towards sustainable and green maritime solutions.
G R Infraprojects, Enviro Infra Engineers, Solarworld Energy Solutions, NTPC GE Power Services, Pace Digitek and Enrich Energy have won NTPC's auction to set up 2,334 MWh of battery energy storage systems (BESS) at its thermal power stations across Karnataka, Maharashtra, Bihar, Andhra Pradesh, and Telangana (Lot-I).
The Rajasthan Electricity Regulatory Commission has issued the “RERC (Battery Energy Storage Systems) Regulations, 2026” to support the growing need for energy storage and improve grid stability in the state. These regulations replace the earlier draft released in 2025 and come after detailed discussions with stakeholders and public hearings held toward the end of that year. The move is seen as an important step to help Rajasthan manage rising renewable energy capacity, especially solar and wind power.
The Himachal Pradesh Power Corporation has floated a tender to set up a 6 MW solar project with a 2.1 MW/4.2 MWh BESS at Tihra Khas village. Bids must be submitted by April 17, 2026. The scope of work entails the design, construction, erection, testing, and commissioning of the solar and storage projects. It also entails providing operations and maintenance (O&M) services for 15 years.
Tamil Nadu will soon get another 1500 MWh battery energy storage system (BESS) to store excess renewable power, as the Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a list of three winning bidders to set up BESS in the state. Maharashtra-based Eagle Infra India Ltd will set up five standalone systems with a cumulative capacity of 175 MW, and TNERC approved its lowest bid of 3.15 lakh/MW per month.
The Maharashtra government has approved a comprehensive policy aimed at strengthening renewable energy deployment while addressing the challenge of power storage. The Maharashtra Renewable Energy and Energy Storage Policy 2025-2035 lays out a long-term roadmap to store clean energy and ensure its availability during peak demand hours.
Bids have been invited until March 10, 2026. The project would be set up across clusters and districts such as Rudrapur, Kashipur, Haldwani, Pithoragarh, and Udham Singh Nagar, Pithoragarh, and Nainital. The primary applications envisaged for the BESS are energy time-shift (arbitrage) and ramping support in Uttarakhand. However, to increase utilisation and improve economic viability, the BESS will also be capable of other use cases, including frequency support (ancillary services), capacity upgrade deferral, resource adequacy, and backup supply to critical loads, such as black start.
Chhattisgarh is preparing for a major push into pumped-storage hydropower, with the state power generation company signing MoUs for 28 units totalling 8,300 MW and putting early-stage clearances and project reports on a fast-track. Under the plan, six locations have been identified for PSP-based hydro projects, with MoUs signed with central public sector undertakings including NHPC, NTPC, THDC and SJVN, according to CSPGCL.
Power Finance Corporation (PFC) has signed MoU with engineering consultancy major MECON Limited to strengthen cooperation across infrastructure and energy sectors, including emerging areas such as green hydrogen, energy storage systems, and renewable energy integration. The MoU aims to leverage the technical expertise of MECON and the financial strength of PFC to accelerate the development and implementation of large-scale infrastructure and clean energy projects in India. The collaboration will focus on supporting sustainable and future-ready energy solutions aligned with the country’s transition towards a low-carbon economy.
SJVN recently awarded a tender for its 250 MW/500 MWh standalone Battery Energy Storage System (BESS) in Panipat, Haryana, at a tariff of Rs 1.97 lakh/MW/month. The tender was awarded to Hardi Hydro Energy Private Limited, two months after SJVN issued it in December 2025. The BESS developer will be responsible for land identification, while land allocation for the project will be handled by UHBVNL on a lease/right-to-use basis. The bidder is expected to offer a project capacity of 250 MW for 2 hours of Power Output (AC) from the Battery Energy Storage Project. This project is scheduled to supply at the Delivery Point/interconnection point at any time block of the day.
The Union Budget aims to accelerate grid-scale energy storage and enable seamless integration of renewable energy. The Union Minister Mr Pralhad Joshi said that by extending the Basic Customs Duty (BCD) exemption on capital goods used in the manufacturing of lithium-ion cells for batteries and Battery Energy Storage Systems (BESS), the budget aims to accelerate grid-scale energy storage and enable seamless integration of renewable energy.
Torrent Power has contracted Larsen & Toubro to construct a 3GW pumped hydro energy storage (PHES) plant in Maharashtra, India. L&T announced that its heavy civil infrastructure arm will deliver the Saidongar-1 Pumped Storage Project’s 10 reversible pump turbines, each of 300 MW. L&T noted that Saidongar-1 will be India’s largest pumped hydro energy storage facility to date.
India’s battery capacity will rise almost ten times to 5 GWH in 2026 from 507 MWH in 2025 driven by major projects. This year will also be the turning point for the sector as projects that started two years ago will begin to come in stream. The previous year also saw an increase in tender with 62 tenders amounting to 102GWH capacity, which is equal to the amount of tenders between 2018 and 2024 combined.
ENGIE, a global leader in low-carbon energy and services, has been awarded a hybrid Solar PV and Energy Storage System (BESS) project in India through a competitive bidding process conducted by SECI. The project features 200 MW of solar capacity paired with a 100 MW / 600 MWh battery energy storage system, marking ENGIE’s first solar + storage hybrid project in the country.
Ministry of Power has amended guidelines to mandate the use of a minimum 20% local content of the total project cost in Battery Energy Storage System (BESS) procurements under the Viability Gap Funding (VGF) scheme. This announcement comes at a time when BESS is not currently included in the notified list under public procurement norms.
NTPC has floated EPC tender to set up 2670 MWh of BESS at nine of its thermal power stations across six states under Lot-2. The BESS must include a battery management system, an energy management system, supervisory control and data acquisition, a power conversion system, and inverter duty transformers.
The regulations apply in all cases where a generating company has an arrangement for the supply of coal or lignite from integrated mines allocated to it, for one or more of its specified end-use generating stations whose tariffs are determined by CERC.
Scheduled for commissioning by March 2026, the BESS will support peak load management and provide energy time shifting to the grid. Khavda solar park is being brought online in phases, with plans to add 30GW over five years. The first gigawatt of capacity went into commercial operation in early 2024.
India’s energy storage industry is at a turning point as developers, financiers, and policymakers work to define viable business models for the next wave of large-scale battery projects.
While the market remains young, aggressive pricing in recent tenders, new financing models, and growing opportunities in the commercial and industrial (C&I) sector are shaping the next phase of growth.
MNRE approved the state government's request for a four-hour battery cycle, which is suitable for Rajasthan where solar resources are rich for long-duration charging and the peak-hour power demand is higher. With solar energy now being generated from various sources, including industrial grid-scale, rooftop plants, and Kusum projects, the energy department is working to map the cumulative generation and consumption patterns to better manage renewable power in the state and store the excess power generated during the day.
BSES Rajdhani Power Limited (BRPL) has joined hands with GIZ under the prestigious StoREin (Energy Storage for Renewable Energy Integration in India) project. Spearheaded by GIZ on behalf of Germany’s Federal Ministry for Economic Affairs & Energy (BMWi) and supported by MNRE, the initiative is part of the International Climate Initiative (IKI) and a key pillar of the Indo-German programme on Sustainable & Inclusive Energy Transition. The MoU will drive technical cooperation and pioneering pilot projects across BRPL’s distribution network.