New Delhi: India's energy storage system (ESS) capacity will need to expand to 888 GWh by 2035-36, from the roughly 1 GWh in place today, according to the 'India BESS Market Review' released by the India Energy Storage Alliance (IESA) and Customised Energy Solutions (CES). The report was unveiled at India Energy Storage Week (IESW) on Wednesday and identifies energy storage as a central pillar for both grid reliability and the country's renewable energy goals.
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The inaugural session of IESW 2026 brought together industry leaders and delegates from 15 countries. Organised by IESA, the three-day event at Yashobhoomi (India International Convention Centre) is hosting over 200 exhibitors and more than 10,000 industry leaders for policy discussions, technical exchange and announcements shaping India's clean energy transition.
IESA President Debmalya Sen said the event reflected the distance India's clean energy sector has covered. "IESW 2026 is more than an industry summit; it's a testament to how far India has come on its clean energy journey," Sen said, adding, "The 888 GWh target by 2035-36 signals a new era where energy storage is at the centre of our energy ambitions."
Radiance Renewables CEO Nitin Bhatia said solar paired with battery energy storage represented the way ahead for the sector.
The report found that India's installed battery energy storage system (BESS) capacity grew 11-fold in just six months, rising from 0.78 GWh in December 2025 to 8.7 GWh in the first half of 2026. The country is on track to cross 10 GWh of installed BESS capacity by the end of the year.
Tender activity has kept pace: 47 GWh of ESS tenders were floated in H1 2026, taking the cumulative tender pipeline to 260 GWh.
Tanya Singhal, Vice President and Country Head-India at the Global Energy Alliance for People and Planet, said storage needed to be woven into every layer of the power system. "To build a truly flexible and resilient grid, storage must be integrated at the generation, transmission, distribution, and consumption levels," Singhal said.
Eighteen projects commissioned, merchant BESS leads capacity addition
So far, 18 BESS projects have been commissioned, with merchant BESS installations accounting for 70 percent of the capacity added in H1 2026.
The report also pointed to accelerating momentum on the manufacturing side. India's current lithium-ion battery cell manufacturing capacity stands at around 2 GWh, against announced targets of roughly 110 GWh by 2030. Cell/pack-to-container capacity is projected to reach 180-200 GWh by 2030.
Pace Digitek Chairman and Managing Director Venugopal Rao Maddisetty described storage as central to the country's infrastructure needs. "Energy storage is now an indispensable national infrastructure, enabling renewable energy to become dispatchable, stabilising the grid, and enhancing resilience," Maddisetty said.
The report noted that India's BESS sector has held up despite global supply chain volatility and rising battery prices, and is now regarded as one of the world's fastest-growing markets.
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Nikhil Bhuta, Director, DC&T at Belding India, said domestic capability would be key to India's position in the sector going forward. "To secure the future, India must build and master storage systems domestically, owning the value chain and setting cost curves for the world," Bhuta said.