Rubix Data Sciences projects India’s BESS requirement to rise nearly seven-fold to 236.22 GWh by FY2031-32
The country had 176.66 GWh of BESS projects operational, under construction, awarded, or under tender as of August 2026, but only 9.08 GWh was operational
Import dependence, aggressive tariff bidding, financing constraints, and grid bottlenecks could slow the conversion of the project pipeline into operating capacity
India’s battery energy storage system (BESS) requirement is projected to increase nearly seven-fold to 236.22 GWh by FY2031-32, from 34.72 GWh in FY2026-27, according to a report by Rubix Data Sciences.
The growth is expected to be driven by rising renewable energy capacity, higher electricity demand and the increasing need to manage variable solar and wind generation. Rubix estimates that meeting the projected BESS requirement could require between INR 3.49 trillion and INR 4.79 trillion in investment.
However, India’s operating BESS capacity remains relatively small compared with the projected requirement. As of August 31, 2026, the country had 9.08 GWh of operational BESS capacity, against the projected requirement of 34.72 GWh by FY2026-27.
However, the broader project pipeline is considerably larger. Rubix identified 176.66 GWh across 187 BESS projects as of August 2026. This included 79.92 GWh under construction, 24.13 GWh already awarded, and 63.53 GWh under tender.
If all these projects are completed, the pipeline would cover around three-quarters of the BESS requirement projected for FY2031-32. However, the report notes that much of this capacity is still in the early stages and will require financing, procurement, and grid connectivity before becoming operational.
Deployment has accelerated in 2026. India added 8.2 GWh of BESS capacity during H1 2026, compared with less than 100 MWh during the same period in 2025.
BESS deployment is currently concentrated in a few states. Gujarat accounted for 44% of installed utility-scale BESS capacity as of June 2026, while Rajasthan represented 43.7%. Maharashtra followed with 5.1%.
The concentration reflects the large renewable energy bases in Gujarat and Rajasthan, where storage can help manage solar and wind generation and shift electricity to periods of higher demand.
India’s rising electricity demand is another major driver for storage. According to projections cited by Rubix, India’s peak power demand is expected to increase from 289 GW in FY2026-27 to 459 GW by FY2035-36, while annual electricity consumption is projected to rise from 1,929 billion units to 3,365 billion units – a 74.4% increase over the same period.
At the same time, renewable capacity is expanding rapidly. India added about 29 GW of solar and wind capacity in the first half of 2026, with solar alone accounting for 26 GW.
Higher renewable generation and peak demand are increasing the need for flexible resources that can store electricity when generation is high and discharge it when needed.
India is also increasing policy support for energy storage. The Energy Storage Obligation, which requires discoms to procure a specific share of electricity consumption through energy storage, is scheduled to rise from 1% in FY2023-24 to 4% by FY2029-30, requiring greater integration of storage into electricity procurement.
The government has also proposed mandatory storage requirements for new ground-mounted solar and onshore wind projects commissioned from July 2027 (see India May Mandate Storage For Solar, Wind Projects From 2027).
Rubix analysts also identify government-backed Viability Gap Funding (VGF) schemes as another enabler. The government plans to support around 43.2 GWh of BESS capacity through VGF. In addition, the Production Linked Incentive (PLI) program for advanced chemistry cells has allocated 40 GWh of its 50 GWh target to four companies.
The report also lists the PM-DHARA (PM-Developing Harmonized and Accelerated Renewable-energy Access) scheme, under which INR 500 billion has been allocated for 50 GWh of BESS deployment by FY2032-33, aimed at addressing renewable intermittency, transmission constraints, and peak-hour curtailment.
Despite the capital and policy support from the government, Rubix says India remains heavily dependent on imported batteries and cells. Lithium-ion battery and accumulator imports increased from $3 billion in FY2025 to $4.7 billion in FY2026, with China accounting for 84% of imports in FY2026. Imports between April 2026 and July 2026 totaled $2.4 billion. Rubix sees this dependence as a key risk as the BESS market scales.
A rapidly expanding BESS pipeline is also putting pressure on project economics. The lowest tariff for a two-hour BESS system fell to INR 1.48 lakh/MW/month in 2025, compared with an indicative benchmark of INR 2.3 lakh/MW/month. Analysts caution that aggressive bidding could make some projects difficult to finance.
The gap between tenders and auctions is another concern. In the first half of 2026, 28 GW of BESS capacity was tendered, up 86% year on year, but only 9 GW was auctioned.
The lack of sufficient transmission infrastructure could also affect the pace of BESS deployment and renewable integration. Rubix estimates that around 6,900 GWh of renewable electricity could not be evacuated during FY2026 because some generation projects became operational before the required transmission infrastructure was ready.
Overall, Rubix sees strong long-term growth for India’s BESS market, but the pace of deployment will depend on whether the country can convert its large project pipeline into operational capacity.
The complete report is available for free download on Rubix’s website.
