India's Energy Storage Boom: 2026 Marks a Transformative Year

India's energy storage capacity is set to leap nearly 10-fold to 5GWh in 2026, driven by a backlog of projects transitioning from tendering to execution. The sector, buoyed by declining tariffs and government support, will test its operational capabilities as major projects come online.

India is poised for a remarkable expansion in its energy storage capacity, with 2026 expected to see a near 10-fold increase to 5GWh. This surge is largely driven by a significant backlog of projects moving from the tendering phase to execution, according to an India Energy Storage Alliance (IESA) study released on Tuesday.

While 2025 was marked by an unprecedented flurry of tender activities, totaling 102 GWh across 69 tenders, 2026 is anticipated to be the year when these projects finally become operational. This transition will be a critical test of the industry's capabilities, as performance of these projects will be closely scrutinized, according to IESA President Debmalya Sen.

Government backing, including a Rs 5,400 crore Viability Gap Funding, and extended Interstate Transmission System charge waivers until 2028, are set to support this transition. March 2026 will witness the commissioning of a major BESS project by Adani, further underscoring the sector's potential for transformation.

(With inputs from agencies.)