Summary:

According to an SBI analysis, India expects to boost its energy storage capacity by a factor of 12, reaching approximately 60 GW by FY32, outpacing growth in renewable energy sources. The proportion of renewable energy projects incorporating energy storage has increased from 5% in FY20 to 23% in FY24. As variable renewable energy triples by FY32, energy storage systems such as ESS will manage excess energy during peak production and demand, thereby stabilizing the grid.

Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs) are set to dominate India’s energy storage sector. BESS capacity is projected to rise 375 times to 42 GW, while PSP capacity will increase fourfold to 19 GW by FY32. India faces challenges in domestic battery cell production, as imports account for 80% of BESS costs. Investments are expected to total US$ 41.22 billion for BESS and US$ 14.13 billion for PSPs by FY32.

Source: IBEF

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