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In Summary

  • Report projects India needs 888 GWh of Energy Storage System (ESS) capacity by 2035-36, including 321 GWh of Battery Energy Storage Systems (BESS).
  • BESS converts electrical energy to chemical energy for storage and back, with main types being traditional rechargeable and flow batteries.
  • Government promotes ESS/BESS via Production-Linked Incentive (PLI) scheme and Viability Gap Funding (VGF) schemes.

In Summary

Released by India Energy Storage Alliance (IESA) and Customised Energy Solutions (CES), report projects that India will require 888 GWh of Energy Storage System (ESS) capacity by 2035-36, comprising 321 GWh of BESS. 

About BESS

  • Meaning: Electrochemical devices that work by converting electrical energy into chemical energy during charging process and then converting it back into electrical energy during discharging.
    • Forms part of broader ESS (See infographic). 
  • Main categories of Batteries:
    • Traditional solid rechargeable batteries where chemical energy is stored in solid metal electrodes. 
      • E.g. Lead Acid batteries, Lithium Ion batteries, Zinc Air Batteries, etc. 
    • Flow batteries where chemical energy is stored in varying types of flowing liquid electrolytes kept in tanks. 
      • E.g., Vanadium redox flow batteries, Zinc-iron flow batteries, zinc-bromine batteries, etc. 

Need for Enhancing ESS including BESS

  • Sharp rise in electricity demand: India's peak electricity demand is expected to reach 300 GW next year. 
  • Installed Power Generation Capacity: Total Installed Generation Capacity is 520 GW comprising 52.3% of non-fossil fuel sources (Jan 2026) requiring advanced storage equipment. 
  • Facilitate Grid Integration: ESS provides critical ancillary services, including frequency regulation, voltage control, and black start capability. 

Key Measures to promote ESS including BESS

  •  Production-Linked Incentive (PLI) Scheme By Ministry of Heavy Industries for establishing 50 GWh of Advanced Chemistry Cell manufacturing capacity. 
  • Two Viability Gap Funding (VGF) schemes to support development of approximately 43 GWh of BESS. 
  • Others: Recognising ESS as an integral part of power systems; inclusion of ESS in Harmonised list of Infrastructure. 
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Harmonised list of Infrastructure

The Harmonised list of Infrastructure is a classification framework that identifies sectors and activities considered infrastructure for the purpose of policy making, investment, and financing. Inclusion signifies recognition as critical for economic development.

Viability Gap Funding (VGF)

A grant provided by the government to make projects more financially viable for private investors. It bridges the gap between the cost of the project and the revenue it is expected to generate, thereby encouraging investment in infrastructure and renewable energy.

Production-Linked Incentive (PLI) scheme

A government scheme that offers incentives to companies based on their incremental sales of manufactured goods. It aims to boost domestic manufacturing, attract investments, and create jobs in key sectors, including electronics, automotive, pharmaceuticals, and textiles.

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