MARKET OVERVIEW
The India energy storage market reached a size of 233.78 MWh in 2024. The market is forecasted to grow at a CAGR of 41.70% during the 2025-2033 period, reaching 6,637.31 MWh by 2033. Growth is driven by major investments in cutting-edge storage technology advancements and government policies supporting renewable energy integration. The market benefits from the improved stability and efficiency provided by smart grids and increasing adoption of electric vehicles, signaling a robust outlook.
STUDY ASSUMPTION YEARS
❥ Base Year: 2024
❥ Historical Year/Period: 2019-2024
❥ Forecast Year/Period: 2025-2033
INDIA ENERGY STORAGE MARKET KEY TAKEAWAYS
❥ The India energy storage market size was 233.78 MWh in 2024 with a forecast to reach 6,637.31 MWh by 2033 at a CAGR of 41.70% (2025-2033).
❥ The market growth is propelled by increasing energy demand and integration of renewable energy sources.
❥ Favorable government policies like the National Electric Mobility Mission Plan and Atmanirbhar Bharat Abhiyan support market expansion.
❥ Battery Energy Storage System (BESS) holds the largest market share of 63.8% in 2024.
❥ Utility scale end users dominate with 54.3% market share in 2024, stabilizing grid operations.
❥ South India leads regionally due to high renewable capacity and energy demand.
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MARKET TRENDS
India is witnessing a strong upsurge in energy storage innovation with significant investment facilitating rapid advances in storage technology. Efforts target enhancing long-term storage capacity, lithium-ion battery manufacturing, and battery recycling facilities to support sustainable transport and renewable power integration. Standalone energy storage tenders accounted for 6.1 GW in Q1 2025, comprising 64% of the 9.5 GW total utility-scale tenders, illustrating growing investor and regulatory engagement.
Government policies and incentives play a pivotal role in catalyzing market growth. Initiatives such as the National Mission on Electric Mobility and Atmanirbhar Bharat Abhiyan incentivize energy storage deployment, especially for solar and wind projects. Moreover, mandatory storage regulations for grid infrastructure reinforce adoption. In July 2024, INR 2,000 crore investment pledges in energy storage, EVs, and green hydrogen sectors underscore the optimistic climate.
Battery storage technology enhancement is critical to grid resilience and renewable integration. The Union power ministry’s Rs.5,400 crore viability gap funding facilitates 30 GWh of battery storage capacity, with Rs.18 lakh per MWh subsidy. Projects like Delhi’s first standalone commercial BESS (20 MW/40 MWh) launched in May 2024 set affordability benchmarks by reducing tariffs by about 55%, highlighting cost efficiency and accessibility.
MARKET GROWTH FACTORS
Escalating energy demand and the shift towards renewable energy are fundamental drivers for the India energy storage market. With India’s ambitious solar and wind energy goals, energy storage technologies such as lithium-ion batteries become essential to smooth intermittent renewable supply, ensuring reliable power. This underpins the market’s rapid expansion and stability enhancement.
Government interventions by financing, subsidies, and tax incentives further bolster market growth. Policies targeting renewable integration and electric mobility increase demand for storage infrastructure. Regulatory frameworks stimulate investment, exemplified by substantial funding commitments during the India Energy Storage Week 2024, facilitating advanced energy solutions and localization efforts.
The increasing need for grid stability emphasizes storage’s role in stabilizing supply-demand mismatches. Utility-scale storage balances loads by buffering excess off-peak energy and delivering it during peaks, minimizing outages and dependence on inefficient fossil fuel peaking plants. This capability, combined with financial benefits and environmental consciousness, fuels adoption across commercial, residential, and utility sectors.
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MARKET SEGMENTATION
By Type:
❥ Battery Energy Storage System (BESS)
❥ Pumped-Storage Hydroelectricity (PSH)
❥ Others
The largest segment in 2024 with 63.8% market share. BESS improves grid stability by storing excess energy during low demand and providing backup during high demand or disruptions. It reduces voltage and frequency fluctuations and efficiently stores renewable energy from wind and solar, supporting a cleaner energy grid.
By End User:
❥ Residential
❥ Commercial and Industrial
❥ Utility Scale
Utility-Scale leading with 54.3% share in 2024, these large-scale systems stabilise grid operations by balancing supply and demand, buffering excess energy off-peak and releasing during peak demand. They facilitate renewable energy integration while reducing fossil fuel reliance.
By Region:
❥ North India
❥ South India
❥ East India
❥ West India
South India is the dominant region driven by rising energy demand and a strong push for renewable energy projects, especially solar and wind, necessitating robust energy storage to maintain grid stability and optimize power usage.
REGIONAL INSIGHTS
South India accounts for the largest share of the India energy storage market due to elevated energy demands and ambitious renewable energy initiatives in states like Tamil Nadu, Karnataka, and Andhra Pradesh. These states focus on expanding solar and wind capacity, requiring energy storage systems to mitigate supply intermittency, stabilize the grid, and promote efficient energy utilization.
RECENT DEVELOPMENTS & NEWS
❥ May 2025: NTPC Green Energy Ltd tendered a 250 MW/1,000 MWh battery energy storage system at its Kayamkulam plant in Kerala with 15-year O&M and containerized 125 MW/500 MWh blocks.
❥ May 2025: AmpereHour Energy and Indigrid’s Kirlokari BESS Pvt Ltd commissioned India’s first regulator-approved urban BESS (20 MW/40 MWh) at BSES Rajdhani, Delhi, providing four-hour peak support and significant diesel reduction.
❥ April 2025: Cygni Energy launched a 4.8 GWh BESS assembly plant in Hyderabad with plans to expand to 10.8 GWh.
❥ March 2025: PUR Energy introduced PuREPower, an AI-powered energy storage product line for scales from home to grid in Hyderabad, addressing grid stability challenges.
❥ March 2025: Hindustan Power announced INR 620 Crore investment for solar and battery storage projects in Assam enhancing renewable capacity and grid reliability.
KEY PLAYERS
❥ NTPC Green Energy Ltd
❥ AmpereHour Energy
❥ Indigrid’s Kirlokari BESS Pvt Ltd
❥ Cygni Energy
❥ PUR Energy
❥ Hindustan Power
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This release was published on openPR.
