Indian companies are finally placing big bets on BESS. List 👇🏻
Welcome to the fourth and the last edition of our BESS newsletter series. In our last edition, we followed the economics of battery storage; exploring how BESS projects generate revenue, who invests in them, and how large-scale deployments are playing out across the globe. This time we turn the lens homeward, bringing the spotlight to India. What began as early curiosity has now evolved into a growing pipeline of tenders, projects, and policies. From pilot runs to serious contracts, India’s BESS story is taking shape. Let’s breakdown by covering:
- India’s BESS evolution and where we stand today?
- Government policies with respect to BESS deployment
- Players who are actively building India’s BESS story
Before we dive deeper, a quick recap of our previous editions:
Newsletter 1 :- BESS: Solving the renewable puzzle
Newsletter 2 :- Inside the Box – Components That Power BESS
Newsletter 3 :- BESS Part 3 – Who Pays For BESS? And How It Makes Money?
Going back in time – the BESS Evolution in India
India’s battery storage journey has quietly shifted gears. What began as pilots and experimental projects is now taking shape as large-scale, commercially-viable deployments. While the total installed capacity may still be modest, the momentum is undeniable.
In 2019, India’s first grid-scale battery pilot project at Rohini, Delhi. Tata Power-DDL, in partnership with AES and Mitsubishi, commissioned a 10 MW / 10 MWh lithium-ion battery storage at its Rohini substation. This was the first real-world demonstration of a battery system supporting an urban distribution feeder. It successfully showcased peak load shaving, fast response and reliability improvements proving that BESS could work on live Indian grids. While this was a pilot project (not tied to long-term regulated revenue like capacity-charge assets), it marked a critical step toward commercial-scale deployment.
The capital city, Delhi is now a home to India’s first regulated, standalone BESS at the distribution level. In April 2025, BSES Rajdhani Power Ltd. (BRPL) commissioned a 20 MW / 40 MWh BESS at its Kilokari substation, developed by IndiGrid and AmpereHour with technical and financial support from GEAPP (Global Energy Alliance for People and Planet). This project is designed to support Delhi’s dense urban feeders by managing daily evening peaks and improving reliability. It marks a critical proof point not just in storage technology, but in regulatory and commercial bankability for DISCOMs.
Where India stands today?
Battery storage in India is no longer an experiment. From congested metro substations to rural grid feeders, we’re now seeing real, commercially backed deployments take shape. DISCOMs, state transmission utilities, and central agencies are all stepping in, not just with pilots, but with revenue-secure projects. As we head into 2025–27, a wave of tendered capacity is expected to go live, marking the shift from small-scale trials to full-scale infrastructure supporting India’s renewable ambitions. Across states, traction is building via tenders signaling rising confidence and commercial maturity.
- Gujarat: State utility GUVNL has awarded 500 MW / 1,000 MWh standalone BESS projects using a fixed monthly “capacity charge” model; an approach that assures developers of revenue and helps DISCOMs plan around grid support services.
- Tamil Nadu: Through TANGEDCO, the state has concluded a 1,000 MWh BESS tender with winning bids distributed across multiple substations. A decentralized deployment model for grid stability.
- Andhra Pradesh: Central utility NHPC recently finalized winners for 500 MW / 1,000 MWh of standalone BESS capacity in the state.
- Karnataka: State transmission operator KPTCL awarded 500 MW / 1,000 MWh BESS across several substations under its standalone battery tender. Another sign of mainstreaming in grid planning.
At the central level, SECI (Solar Energy Corporation of India) has launched multiple storage-linked tenders both as standalone BESS and hybrid RE + storage bids. In particular, Kerala’s 125 MW / 500 MWh auction saw aggressive participation and pricing. Meanwhile, a separate Viability Gap Funding (VGF) mechanism is now active to de-risk early-stage projects and improve economics for developers.
The Policy Stack That Makes BESS Bankable
India’s battery storage market is gaining momentum not just because of technological progress, but because of the policy architecture now taking shape. Several foundational policies are already in place, helping make BESS projects commercially viable and de-risking them for investors and developers.
VGF (Viability Gap Funding) Scheme
To accelerate early adoption of grid-scale battery storage, the GoI introduced a Viability Gap Funding (VGF) scheme aimed at closing the financial gap that often deters private investment. First approved by the Union Cabinet in September 2023, the scheme initially targeted 4,000 MWh of storage capacity. It is essentially a one-time capital grant that helps projects clear financing hurdles and offer cost-effective tariffs to DISCOMs until the technology becomes self-sustaining.
How the scheme pays?
Support level: The original scheme allowed support up to 40% of project capex. In April 2025 the government recalibrated the effective payout in line with falling battery costs, stating the VGF would be ₹46 lakh per MWh or 30% of capex, whichever is lower. This keeps total outlay within the original budget while covering more MWh, the same budget can now support about 13,200 MWh instead of 4,000 MWh.
Disbursement schedule: 10% at financial closure, 45% upon commissioning, and the remaining 15% annually over 3 years to ensure execution discipline and reward operational performance.
Tranche II was launched in June 2025 to support 30 GWh of standalone BESS with ₹5,400 crore in funding. This tranche offers a fixed grant of ₹18 lakh per MWh, further reinforcing the government’s commitment to scaling storage. The same announcement also extended the ISTS (Inter State Transmission System) waiver for eligible co-located projects. BESS projects co-located with renewable energy at ISTS substations, developers get 100% ISTS transmission charge exemption valid for projects commissioned before June 30, 2028. This incentive significantly improves project economics.
Energy Storage Obligation (ESO)
As part of India’s Renewable Purchase Obligations (RPO), DISCOMs must meet a portion of their targets through stored renewable energy. The ESO requirement ramps up through FY2030, creating structural demand for grid-connected storage. The Ministry of Power’s order specifies the following minimum ESO on an energy basis, as a percentage of the entity’s total electricity consumption:
(Source: Ministry of Power, Govt. of India.)
The 85% renewable charging rule
ESO is considered fulfilled only if, on an annual basis, at least 85% of the total energy stored in the ESS was procured from renewable sources. Up to 15% may be from non-renewable sources; anything above that portion will not count toward ESO compliance. Here’s a clean, drop-in example for the Company or DISCOM consuming 1,000 GWh in a year. To meet ESO compliance in FY2025-26 ESO target is 2.0%.
Policy inputs
- ESO for FY2025–26 = 2.0% of total electricity consumption, measured in energy (MWh).
- You may count storage energy only if at least 85% of the energy stored over the year was charged from renewables.
Our numbers
- Annual consumption = 1,000 GWh
- ESO target = 2.0% × 1,000 GWh = 20 GWh that must be renewable energy delivered through storage and meeting the 85% rule.
Worked scenarios
This compliance tracks both quantity (total qualifying GWh) and quality (RE share) throughout the year.
(Source: Bastion Research)
Who’s building India’s BESS story?
As India transit from pilot-scale storage to large, commercially viable deployments, a diverse set of companies have begun to define its BESS landscape. Here we highlight companies with a demonstrable footprint in the BESS space through awarded tenders, commissioned projects or a willingness to foray into energy storage system space.
- JSW Energy Ltd. – Betting on Battery + Pumped Storage
The Company through its renewables and clean energy arm is charting an ambitious course into energy storage along with renewable generation. The Company targets a 30 GW generation capacity and 40 GWh storage capacity by 2030. It is actively evaluating new BESS installations and aiming to align storage capabilities with “round-the-clock” renewable energy delivery.
(Source: JSW Energy, Q1FY26 Result presentation)
2. Tata Power Company Ltd. – Integrated Solar + Storage
Tata Power is actively building a diversified energy storage presence across the value chain, from EPC delivery to discom-level pilots. It is executing multiple utility-scale BESS projects while simultaneously operating distribution-level assets. The company remains an active bidder in upcoming tenders involving firm power and hybrid renewable + storage solutions. One of Tata Power’s flagship storage-linked projects is the 100 MW solar + 120 MWh Battery Energy Storage System (BESS) developed at Rajnandgaon, Chhattisgarh. Commissioned on 12th March 2024, it was one of the first and largest integrated solar-plus-storage installations in the country.
(Source: Tata Power Company Ltd. Press Release)
3. Adani Group – Plans to deploy large scale BESS
The Adani Group is quickly positioning itself as a serious player in India’s battery storage space, both through its renewable energy arm Adani Green Energy Ltd (AGEL) and its distribution business Adani Electricity Mumbai Ltd (AEML). While no BESS project has been commissioned by Adani Group yet, execution is now firmly underway at the distribution level through AEML. At the utility-scale, AGEL has clearly placed BESS as a core component of its future clean energy portfolio. Their BESS strategy is both policy-aware and scale-ready, especially in the RTC renewables space.
(Source: Adani Green Energy Ltd., Q3FY25 Media Release)
4. Reliance Power Ltd. – Integrated Solar + Storage
Reliance Power, through its clean energy arm Reliance NU Energies, has rapidly emerged as the most ambitious Solar + BESS developer in India both in scale and execution intent. On May 2, 2025, Reliance NU Energies secured a Letter of Award (LoA) from SECI for a 930 MW solar + 465 MW / 1,860 MWh BESS project the largest single-site solar + storage project in all of Asia. The project exemplifies how storage can now be cost-competitive when bundled with solar, offering firm and dispatchable power. On May 12, 2025, Reliance Power added another 175 MW / 700 MWh BESS allocation as part of SJVN’s 1,200 MW solar + 2,400 MWh storage tender. Combined, this gives the Company a total pipeline of ~2.5 GWp of solar capacity and ~2.5 GWh of BESS capacity making Reliance Power Ltd. the largest integrated clean energy + storage developer in the country today.
(Source: Reliance Power Ltd., BSE Filings)
5. Prostarm Info Systems Ltd. – Bagging BESS related Orders
Prostarm Info Systems has made a strategic pivot from equipment supplier to emerging BESS OEM, with a multi-pronged approach spanning manufacturing, execution, and SPV formation. In July 2025, the company announced a ₹25 crore investment to set up a 1.2 GWh BESS manufacturing facility at Reliance MET City in Jhajjar, Haryana, the plant is expected to be commissioned by the end of FY26. Commercially, the company has begun converting traction into orders. In July 2025, Prostarm received a ~₹52 crore EPC contract from Adani Electricity Mumbai Ltd (AEML) for a 22 MWh BESS system. On 8 August, it received a Letter of Award (LOA) from Bihar State Power Generation Co. Ltd (BSPGCL) to execute a 120 MWh BESS under a BOOT model, backed by a 12 year rental agreement at ₹4.44 lakh per MW per month (i.e. yearly rental of Rs. 15.98 Crores on 30MW/120 MWh). Momentum further continued as the Company was declared the L1 bidder for a 150 MW / 300 MWh standalone BESS project at KPTCL’s Doni substation in Karnataka. The project, structured under a BOO model, carries a monthly rental of ₹2.54 lakh per MW and is eligible for VGF support up to ₹27 lakh per MWh (or 30% of capex).
(Source: Prostram Info System Ltd.)
6. Godawari Power & Ispat Ltd. – Plans to manufacturer BESS containers
In its Q1 FY26 Board resolutions on 6 August 2025, GPIL outlined its entry into the BESS sector with a ₹700 crore investment in a 10 GWh battery pack and container manufacturing plant via its subsidiary, aimed at commissioning by March 2027. The plant will import cells, not manufacture them, and focus on assembling and delivering BESS containers under a BOO model with incentives from the Government of Maharashtra.
(Source: Godawari Power & Ispat Ltd. BSE Filings)
7. Oriana Power Ltd. – Small steps for BESS already taken
The Company is rapidly scaling up its BESS ambitions, aiming to become a key player with a total capacity of 3.5 GWh by FY30. As of FY25, the company has already secured 403 MWh of BESS projects and has an additional 700 MWh pipeline in advanced stages. The company’s Vision 2030 outlines a structured scale-up, with a near-term goal of 1+ GWh BESS capacity by FY26, and a longer-term transition from project execution to platform creation across solar, storage, and green hydrogen.
(Source: Oriana Power Ltd., Investor Presentation FY25)
8. SPML Infra Ltd. – Taking the Tech Transfer Route
The Company has officially made its entry into the battery energy storage space, signaling a major diversification in its infrastructure portfolio. On April 3, 2025, SPML signed an exclusive technology licensing agreement with Energy Vault (USA); a globally recognized energy storage firm. The agreement grants SPML rights to locally manufacture and deploy B‑VAULT battery hardware and VaultOS energy management software, tailored for the Indian market. The partnership targets a minimum deployment of 500 MWh in the first year, scaling up to 30–40+ GWh over the next decade.
(Source: SPML Infra Ltd., Investor presentation June 2025)
9. Waaree Energies Ltd. – Spreading it’s wings in the renewable energy landscape
The Company has committed ₹2,073 Cr to establish a 3.5 GWh lithium-ion storage and BESS manufacturing facility in Valsad, Gujarat, scheduled to go live by FY27. The company’s management views BESS as a key strategic pillar expecting it to contribute 10–12% of group revenue by FY28 as co-located solar + storage projects expand under SECI and state-level programs.
(Source: Waree Energies Ltd., Investor presentation Q1FY26)
10. Premier Energies Ltd. – Aims to achieve integrated (Solar + BESS + Inverter) capacity
The Company is firmly entering the BESS segment as part of its “Mission 2028” strategy. The company plans a 12 GWh cell-to-pack and container-based BESS rollout, to be deployed across two phases 6 GWh in FY27 and another 6 GWh in FY28. Management positions BESS, along with inverters, as high-margin segments poised to significantly enhance ROCE. The broader strategic vision includes achieving integrated solar, BESS, and inverter capacity targets by FY28.
(Source: Premier Energies Ltd., Investor presentation Q1FY26)
Conclusion:
From this point forward, as India’s power grid evolves, the trajectory of BESS is clear: Forward & Upward. Its role will grow in scale, relevance, and strategic importance from here on. From early pilot deployments in urban substations to gigawatt-scale tenders by SECI, state utilities and private players, BESS is no longer a futuristic idea it’s a critical infrastructure layer taking shape right now. With the help of policy push from the government, the country is laying the groundwork for a vibrant storage ecosystem. Companies across the value chain from EPC contractors and power producers to new-age manufacturing entrants are making strategic bets.
We hope this BESS Series has offered a clear, structured, and engaging window into the world of battery storage, and offered a clearer understanding of both the technology behind BESS and its strategic relevance to India’s energy future.
Thank you for following along 🤝🏻.
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