Price mismatch may impede India’s battery storage projects: report
India's battery energy storage projects may face challenges due to economically unviable tariffs discovered in 2025 auctions. The report highlights a significant disconnect between tariff reductions and battery cost reductions, with many awarded projects classified as risky. Recommendations include implementing cost-reflective tariff floors and stricter eligibility norms to support project execution.
- ▪India's clean energy transition relies heavily on energy storage systems as renewable generation expands.
- ▪The report indicates that 75% of allocated two-hour BESS capacity in 2025 falls into a 'risky' segment due to insufficient tariffs.
- ▪Cumulative commissioning delays could hinder India's goal of achieving 500 GW of renewable capacity by 2030.
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India’s rapid expansion of battery energy storage procurement may be hard to execute as tariffs discovered in 2025 auctions increasingly don’t appear to be economically viable, according to a report released by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.India’s clean energy transition is becoming increasingly dependent on energy storage systems as renewable power generation expands. Standalone energy storage tenders — where storage capacity is contracted independently of renewable generation assets — accounted for more than 71% of the country’s total energy storage tendered capacity in 2025, with standalone Battery Energy Storage System (BESS) projects comprising around 60% of this share.During 2025, around 10.4 gigawatts (GW) of…
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