Role of BESS in shaping India's Energy Transition

The Hindu

04-06-2025

The climate crisis has changed the idea of energy security. A country's energy sources must stand firm on four planks: availability, accessibility, affordability, and environmental acceptability. Environmental acceptability focuses on the trade-offs policymakers and the public are willing to make in terms of pollution, biodiversity loss, and greenhouse gas emissions. In this context, renewables have strengthened their position as an energy source that provides affordable power with lower emissions. They are important for the fulfillment of Sustainable Development Goal 7, which focuses on access to clean energy.
The case for integrating green energy into power systems is further strengthened by looming climate risks and geopolitical tensions. However, increasing renewable energy capacity may not have the desired results due to the intermittent nature of the resource. Energy storage technologies, such as Battery Energy Storage Systems (BESS), offer a crucial solution to mitigate the variability of renewable energy while enhancing grid stability.
Why energy storage matters
With the potential to enhance grid operations, enable large-scale integration of renewables, and provide reliable power, energy storage systems are critical to the energy transition. Among the technologies available, BESS stands out for its affordability, scalability, rapid deployment, and geographical flexibility.
By stabilising the grid, balancing demand-supply fluctuations, and enabling peak load management, BESS plays a foundational role across all forms of energy storage. Integrating BESS into the grid with renewables can considerably reduce greenhouse gas emissions from the power sector. Further, its ability to support decentralised energy solutions and microgrids ensures renewable energy reaches where it is needed most, making BESS a key enabler of a cleaner, more resilient, and equitable energy ecosystem.
Declining costs and technological advancements lead to the accelerating expansion of BESS. Over the past 15 years, the average cost of batteries has fallen by nearly 90%. However, despite this progress, utilisation of its full potential is impeded by regulatory, technical, financial, and market barriers.
India's BESS Landscape
Emerging economies such as India can lead by example in BESS deployment through a combination of financing and policy measures. India has set a target of 500 GW of installed power capacity from non-conventional fuels by 2030. As of January 2025, the country had already achieved 217.62 GW. To achieve full results, BESS deployment must be accelerated.
In this regard, the government has committed to installing 47 GW of BESS by 2032 to enable increased renewable deployment and its integration with the grid. Schemes such as Viability Gap Funding and waiver of interstate transmission system charges for BESS projects commissioned by June 2025 have been enacted to support BESS projects.
But progress has been slow. In the Economic Survey 2024-25, the Indian government highlighted the challenges associated with scaling up renewable energy and energy storage deployment — including the lack of investment for grid upgradation, speed of BESS deployment by large customers, access to critical minerals needed for indigenisation of storage technology, and delays in large-scale BESS agreements. The survey called for focusing on innovation and investment for resolving challenges in procuring battery storage, grid infrastructure, and critical minerals.
Innovative partnerships can help scale up BESS deployment. Using an alliance of public, private, and philanthropic entities can provide concessional funding and technical assistance for BESS.
Following the idea of leveraging collaboration to bring results, the BESS pilot project was initiated in Delhi by BSES Rajdhani Private Limited in partnership with IndiGrid Infrastructure Trust (IndiGrid) and Global Energy Alliance for People and Planet (GEAPP). The commissioning of the 20 MW/40 MWh BESS project at BRPL's 33/11 kV Kilokari substation is a milestone for India's energy storage. It will provide a reliable power supply for over 12,000 low-income consumers. The project marks a significant step forward toward India's goal of 47 GW of energy storage by 2030, creating a technical playbook for BESS adoption, supporting regulatory reforms, and incentivising future BESS projects.
Another example of how partnerships can help scale up BESS deployment in India is EnerGrid — a $300 million platform for developing greenfield transmission and standalone BESS projects. It was launched in 2024 by IndiGrid, British International Investment, and the Norwegian Climate Investment Fund managed by Norfund.
Facilitating more such initiatives will be key to increasing BESS deployment in India, fulfilling SDG 7 commitments, enhancing energy security, and improving grid stability.
Emerging as a leader
India has been emerging as a leader in renewable energy deployment. The reasons for increasing renewables in the energy supply are to reduce emissions and create independence from imports of conventional fuels. However, the full potential of renewable energy cannot be achieved without energy storage. To become energy secure, India must complement its renewable energy capacity with BESS.
With partnerships, expeditious large-scale BESS projects for central and State grids, concessional financing, technological aid, manufacturing localisation, and recycling opportunities, India can utilise BESS to its fullest extent. This can make India a leader among emerging economies in terms of BESS projects. As a member of the BESS consortium, founded by GEAPP, India has been focusing on deploying energy storage to ensure any increase in renewable energy power capacity can be utilised to its full potential. With more alliances, India can emerge as an energy-secure nation with flexible grids and increased renewable deployment.
Saurabh Kumar, vice-president, India, Global Energy Alliance for People and Planet; Harsh Shah, CEO & executive director, IndiGrid