India's Battery Storage Investment to Surpass $1 Billion by 2025 Amid Financing Hurdles

India's battery storage investment is projected to exceed $1 billion in 2025, but faces significant barriers due to high financing costs. Despite global investment growth, emerging economies like India struggle with twice the financing costs of advanced nations, highlighting a need for supportive policies and regulatory frameworks.

India is poised to see its battery storage investment soar beyond the $1 billion mark by 2025, according to the International Energy Agency (IEA). However, high financing costs continue to deter the sector's growth, particularly in developing economies such as India.

The IEA report underscores that while battery storage investment is on the rise globally—having surged by 45% in 2024—the financing dynamics in India are particularly challenging. Financing costs in India are about twice those in advanced economies, significantly affecting project profitability.

In light of these challenges, the IEA emphasizes the importance of targeted policies, regulatory measures, and financial support to foster investment in India's battery storage market. The report highlights the necessity of a robust regulatory framework to secure stable and cost-reflective revenue streams for the widespread adoption of battery storage solutions.

(With inputs from agencies.)