India's Battery Storage Capacity Sees Four-Fold Growth

India's battery energy storage capacity surged to 219 MWh as of March 2024, up from 47.6 MWh in March 2023, according to Mercom Capital. Policy measures and the Viability Gap Funding programme are boosting this growth. The largest capacity was installed in Chhattisgarh, with 54.8% of the cumulative installed capacity.

India's battery energy storage capacity grew more than four-fold to 219 MWh as of March 2024, Mercom Capital revealed on Wednesday.

In March 2023, the overall battery energy storage capacity in India was 47.6 megawatt-hour (MWh), the US-based research firm highlighted in its latest report.

Policy measures, including deviation settlement mechanisms, grid connectivity regulations, and ancillary services regulations, are set to ensure efficient renewable integration and grid stability, driving utility-scale energy storage demand, stated the report titled 'India's Energy Storage Landscape'.

Aiming to install 4 GWh of battery energy storage systems (BESS), the Viability Gap Funding (VGF) programme is supported by a budget of Rs 37.6 billion (USD 452 million).

The VGF, along with energy storage obligations (ESO) and bidding guidelines for energy storage projects, are significantly enhancing the country's energy storage project pipeline.

Beginning with small pilot projects in 2013, India's cumulative installed energy storage capacity reached 219.1 MWh by March 2024. Notably, 120 MWh was added between January and March 2024. Solar photovoltaic (PV) systems combined with BESS represented 90.6 percent of the total installed capacity.

''India is an emerging market for energy storage, still in the early development stages. Despite rapid renewable energy growth, energy storage has lagged, potentially causing curtailment and grid flexibility issues,'' stated Mercom Capital Group CEO Raj Prabhu.

Chhattisgarh leads in BESS capacity, accounting for 54.8 percent of the cumulative installed capacity. Additionally, the nation's operational pumped hydro storage capacity stood at 3.3 GW as of March 2024, with 76 percent of this capacity located in Telangana and West Bengal.

(With inputs from agencies.)