India May Commission 45–50 GWh of BESS in FY2027–FY2028
September 29, 2026
India is expected to commission 45–50 GWh of battery energy storage system (BESS) capacity across FY2027 and FY2028, a massive leap from the ~1 GWh commissioned by the end of FY2026.
Government-led auctions are driving demand, with BESS-linked projects accounting for nearly 40% of total auctioned capacity in FY2026 (up from ~5% in FY2024–FY2025). Out of 50–55 GWh scheduled, ~40 GWh is awarded through government auctions (utilities as offtakers), while 10–15 GWh targets commercial/industrial (C&I) consumers and merchant markets.
The Battery prices hardened in 2026 after falling in 2025. Projects running on low tariffs with battery prices around $55–65/kWh and tariffs of ₹220,000–250,000 per MW per month yield an estimated internal rate of return (IRR) of 12–14%.
With solar and wind reaching ~39% of installed capacity and ~15% of generation in FY2026, BESS is critical to bridge the gap between daytime solar generation and evening peak demand. Policy enablers include viability-gap funding supporting ~43.8 GWh and inter-state transmission charge waivers for qualifying BESS projects commissioned through June 2028.
Execution risks remain due to potential delays in 8–9 GWh of awarded capacity, limited developer experience, and reliance on overseas component suppliers.
