India Faces BESS Delays Amid Rising Battery Prices
India plans massive energy storage expansion to support renewables, but rising battery prices and low tariffs threaten 12 GWh of under-construction capacity.
India is accelerating its energy storage and transmission infrastructure to integrate growing renewable energy capacity into the national power grid. CareEdge Ratings estimates that storage-related capital expenditure will exceed Rs 4 lakh crore to meet a projected requirement of 411 GWh by FY32. Additionally, the transmission sector will require approximately Rs 5.19 lakh crore in investment between FY27 and FY31.
Crisil Ratings predicts a sharp increase in Battery Energy Storage System (BESS) deployment, with 45-50 GWh expected to be commissioned over the current and next financial years, compared to just 1 GWh in the previous fiscal year. Despite this growth, roughly 12 GWh of under-construction capacity faces potential commissioning delays.
These delays stem from weak return potential caused by a combination of aggressive low-tariff bidding in 2025 and a hardening of battery prices in 2026. While renewable energy expands, coal-based thermal power remains essential for grid flexibility and meeting overall demand. Experts also highlight equipment procurement as a primary risk due to the sector's continued reliance on overseas suppliers for critical battery components.
