Rising Opportunities for Energy Storage in India
The energy storage systems have gained considerable momentum in the Indian market and higher storage deployments are expected in 2022.
India’s renewable energy capacity is growing exponentially, driven by the ambitious target of achieving 500 GW of non-fossil energy capacity by 2030. The government has recognized the role of energy storage in its renewable energy scale-up. Its requirement for battery storage is estimated at 120 GWh by 2030 to support its 500 GW renewable capacity target.
Energy storage has emerged as the key driver to firming power capacities while accelerating clean energy adoption. Regardless of the generation sources, energy storage can be used to make the overall grid more efficient and resilient.
The global battery energy storage is estimated to grow to $10.84 billion in 2026, according to GlobalData’s latest report. The fall in battery technology prices contributes majorly to this growth.
Currently, India has only 20 MW of installed battery storage capacity; around 3 GW of energy storage project tenders floated in 2021 and are expected to progress this year.
As part of India’s solar Aatmanirbhar vision, the government is working towards mainstreaming the energy storage sector. It has recently approved the production-linked incentive program on ‘Advanced Chemistry Cell (ACC) Battery Storage' for achieving manufacturing capacity of 50 GWh of ACC with a budgetary outlay of Rs. 18,100 crores.
Investment in research and development schemes to create technologically advanced storage equipment is taking place. Progress on battery technologies like sodium-ion also continues apace. Lithium-ion battery technology will drive the growth of stationary storage within BESS over the next ten years.
To fully capture the potential of energy storage systems, India needs policy and regulatory changes and a framework to support the adoption of energy storage systems.