Executive Summary

India’s Battery Energy Storage Systems (BESS) market is poised for transformative growth, driven by the nation’s 500 GW renewable energy target by 2030 and the crucial need for grid stability. As of early to mid-2025, India’s operational BESS capacity has seen significant growth, with projections indicating a robust expansion to approximately 74 GW / 411 GWh by 2032. This report analyzes the BESS industry in India, highlighting major players, emerging participants, vertically integrated competitors, and clarifying the evolving strategies of key firms like Adani Green, Waaree Energies, Reliance Power, and Sterling and Wilson Renewable Energy in this dynamic space. It provides a comprehensive outlook on the market’s future, essential for investors.

Table of Contents

1. Industry Overview
   • Market Size and Growth
   • Key Applications
2. Major Players
3. Emerging Players with Significant Capacity
4. Vertically Integrated Competitors
5. Evolving Strategies of Major Players
6. Future of BESS in India
   • Growth Drivers
   • Challenges
   • Future Outlook
7. Conclusion

1. Industry Overview

Market Size and Growth

The Indian BESS market, valued at approximately USD 260 million to USD 7.8 billion in 2024 (depending on the source and scope of definition), is projected to reach over USD 9-32 billion by 2030-2033, exhibiting a robust Compound Annual Growth Rate (CAGR) often exceeding 25-27% during the forecast period. This accelerated growth is primarily driven by:

• Renewable Energy Integration: India’s installed renewable capacity reached approximately 220 GW as of March 2025, rapidly pushing towards 500 GW non-fossil fuel capacity by 2030. BESS is critical for managing the intermittency of solar and wind power, enabling round-the-clock (RTC) clean energy supply and ensuring grid stability.
• Grid Stability: BESS is essential for ancillary services like frequency regulation, voltage support, and peak shaving, enhancing overall grid reliability and resilience.
• Policy Support: The Indian government has demonstrated strong commitment through initiatives like the National Framework for Energy Storage Systems (2023), the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries (worth ₹18,100 crore), and significant Viability Gap Funding (VGF). An additional ₹5,400 crore in VGF has been approved to support 30 GWh of new standalone BESS development, augmenting the existing scheme for 13.2 GWh of projects. Furthermore, the Inter-State Transmission System (ISTS) charges waiver for storage projects has been extended until June 30, 2028.
• Declining Battery Costs: Global lithium-ion battery pack prices have continued their downward trajectory, making BESS solutions increasingly economically viable and accelerating adoption. The cost of cells is expected to decline further from around USD 95/kWh in FY 2025 to USD 68/kWh in FY 2030.
• Growing EV Adoption: The rapid expansion of the Electric Vehicle (EV) ecosystem in India is creating significant demand for BESS solutions, particularly in charging infrastructure, to manage peak loads and ensure stable power supply.

The Central Electricity Authority (CEA) now projects a need for approximately 74 GW / 411 GWh of storage capacity by 2032, a significant increase from earlier estimates, reflecting the aggressive scale-up of renewable energy and the associated demand for storage. As of March 2024, India’s BESS capacity was around 111.7 MW/219.1 MWh, but has been rapidly adding capacity, with numerous new projects being commissioned and tendered in early to mid-2025, including large-scale utility systems. Tenders for 3625 MW / 8100 MWh of standalone BESS were floated in 2024 alone.

Key Applications

BESS is critical for:

• Renewable Integration: Storing solar/wind energy during peak generation hours for discharge during non-generating hours to provide reliable, round-the-clock power.
• Grid Services: Offering essential ancillary services such as frequency regulation, voltage support, black start capability, and peak shaving to enhance grid stability and reduce congestion.
• EV Infrastructure: Supporting fast-charging networks, enabling efficient energy management, and potentially facilitating vehicle-to-grid (V2G) integration.
• Microgrids: Enabling reliable and resilient power supply in remote areas, for critical infrastructure, and for industrial applications, often reducing reliance on fossil fuel generators.

2. Major Players

The Indian BESS market features established conglomerates and specialized firms, many of whom are publicly listed and offer direct or indirect investment opportunities:

• Exide Industries Ltd: A leader in lead-acid and lithium-ion batteries, Exide is heavily investing in advanced chemistry cell (ACC) manufacturing, benefiting from the PLI scheme. It integrates BESS for telecom, solar, and grid applications, leveraging its extensive manufacturing base and strategic partnerships.
• Amara Raja Energy & Mobility Ltd: (formerly Amara Raja Batteries Ltd.) Another prominent battery manufacturer, also a PLI beneficiary. It is setting up giga factories for lithium-ion cells and BESS, catering to the EV, telecom, and renewable energy sectors.
• Tata Power (via Agratas): A diversified power utility with substantial renewable energy assets. Its subsidiary, Agratas, is poised to be a major player in lithium-ion cell manufacturing. Tata Power strategically integrates BESS into its own renewable projects and for external clients, leveraging its end-to-end capabilities.
• Statcon Energiaa: One of India’s largest solar inverter suppliers, Statcon integrates BESS for telecom and industrial applications, with a track record of over 30,000 projects. (Note: Primarily a private entity, direct stock market investment may not be available for its BESS division.)
• AES Corporation: A global player with significant energy storage projects worldwide. Its Indian operations include collaborations on projects like the 6 MW/15 MWh Modhera BESS in Gujarat. (Note: Publicly traded on international exchanges, not directly on Indian bourses.)

3. Emerging Players with Significant Capacity

Emerging players are scaling up to meet India’s escalating BESS demand and present high-growth investment opportunities:

• Oriana Power: This company has secured a significant 250 MW/500 MWh BESS project from Gujarat Urja Vikas Nigam Limited (GUVNL), demonstrating its capability in executing large-scale BESS projects and positioning itself for substantial revenue generation.
• Gensol Engineering: An active player in the solar EPC and BESS space, Gensol Engineering has commissioned and secured substantial BESS projects, including a 250 MW/500 MWh BESS project in Gujarat and a ₹450 Cr project for a state utility, indicating strong growth.
• Avaada Group: A rapidly growing renewable energy developer, Avaada is developing integrated renewable-plus-storage projects, strategically leveraging partnerships with battery technology firms to offer dispatchable power. (Note: May not have a direct listed entity for BESS.)
• Vyomaa Energy: Specializes in solar-plus-storage systems for residential and commercial use, incorporating advanced Battery Management Systems (BMS). (Note: Likely a smaller, unlisted player.)
• EnerCube (Enertech): Offers BESS solutions for grid stability and renewable integration, providing plug-and-play systems particularly for industrial applications. (Note: Likely unlisted.)

4. Vertically Integrated Competitors

Vertically integrated players control multiple stages of the value chain, from cell manufacturing to system integration and project execution, providing robust models for sustainable growth and efficiency:

• Tata Power (via Agratas): Their strategy encompasses cell manufacturing, BESS integration, and renewable project development. Their upcoming Gujarat gigafactory further solidifies their end-to-end capabilities in the energy storage domain.
• Exide Industries: With capabilities spanning cell production, Battery Management System (BMS) development, and complete BESS solutions, Exide leverages its strong manufacturing base and distribution network to serve diverse applications.
• Amara Raja Energy & Mobility: They are integrating cell production with pack assembly and comprehensive BESS solutions, primarily targeting the burgeoning EV and telecom markets with significant planned investments in manufacturing capacity.
• Jakson Group (EnerPack): Manufactures BESS components and provides integrated microgrid solutions, catering to specialized segments like defense and remote areas. (Note: The BESS division might be part of a larger unlisted group.)
• Statcon Energiaa: Combines inverter manufacturing with BESS integration and comprehensive after-sales support, with a strong focus on the telecom and industrial sectors.

5. Evolving Strategies of Major Players

Previously, some large Indian renewable energy companies were perceived to have limited or no direct presence in BESS manufacturing or integration. However, their strategies are rapidly evolving to actively incorporate BESS, recognizing its pivotal role in their growth and the broader energy transition:

• Adani Green Energy Ltd (AGEL): While primarily focused on developing large-scale solar and wind projects, AGEL has explicitly announced an updated strategy for “large-scale deployment of Battery Energy Storage Systems”. This shift is driven by significant cost declines in BESS, making it crucial for grid integration, supporting rapid renewable growth, and complementing their existing projects. The Adani Group’s entity, Adani New Industries Limited (ANIL), has also successfully integrated BESS in its pilot green hydrogen plant in Kutch, demonstrating practical application. This confirms AGEL’s strategic involvement in BESS for optimizing their renewable assets.
• Waaree Energies: Contrary to previous assumptions of limited involvement, Waaree Energies has entered the BESS space. Their official communications confirm that they offer “advanced containerized Battery Energy Storage Systems (BESS)” for utility-scale projects, including “state-of-the-art 5MWh liquid-cooled systems specifically engineered to enable round-the-clock renewable energy delivery.” This indicates their direct participation beyond just solar module manufacturing and EPC.
• Reliance Power: While Reliance Power might outsource the actual manufacturing of BESS, it is actively securing and developing large-scale projects that include BESS components. A notable example is the 350 MW solar project with 175 MW/700 MWh BESS secured in 2024. Their strategy involves integrating storage into their generation projects to provide dispatchable renewable power, crucial for meeting evolving grid demands.
• Sterling and Wilson Renewable Energy: As a global EPC leader in solar, Sterling and Wilson Renewable Energy is actively involved in BESS integration. They explicitly state their expertise in “Solar PV + Energy Storage” solutions and have implemented over 50 MWh of Energy Storage systems in Solar PV based Hybrid Projects. They offer technology-agnostic energy storage solutions, showcasing their capability in complex project execution that incorporates BESS.

Reasons for Evolving Involvement:

• Strategic Imperative: BESS is no longer just an add-on but a strategic necessity for large-scale renewable energy developers and EPC players to provide stable, dispatchable, and round-the-clock power, which is increasingly mandated in tenders.
• Declining Costs & Maturing Technology: The continuous reduction in battery costs and advancements in BESS technology make these solutions more economically viable and easier to integrate into large projects.
• Market Opportunity: The sheer size of India’s energy transition and the CEA’s ambitious storage targets present an immense market opportunity that major players cannot afford to ignore.
• Government Support: Clear policy signals, attractive VGF schemes, and PLI incentives make investments in BESS more de-risked and attractive.

6. Future of BESS in India

Growth Drivers

• Robust Policy Support: The National Framework for Energy Storage Systems (2023) mandates a 4% storage obligation by 2029-30. Expanded VGF (₹5,400 crore for 30 GWh) and ISTS charge waivers are significant financial incentives.
• Accelerated Cost Reductions: Continued global and domestic efforts are driving down BESS tariffs, making projects more financially attractive and competitive with conventional power.
• Technological Advancements: Ongoing innovations in battery chemistries (e.g., higher energy density LFP, emerging sodium-ion), improved Battery Management Systems (BMS), and advanced thermal management systems enhance efficiency, safety, and lifespan, further boosting adoption.
• Rise of Hybrid Systems: The bundling of solar, wind, and BESS to provide firm and dispatchable power is gaining significant traction, leading to more integrated project developments.
• Domestic Manufacturing Push: PLI schemes for ACC batteries and increasing focus on domestic sourcing of critical minerals aim to reduce import dependence and boost local production capabilities.

Challenges

• High Initial Costs: Despite declining trends, the upfront capital expenditure for BESS projects remains substantial, requiring continued financial support and innovative financing models.
• Supply Chain Risks: Dependence on imported critical minerals (like lithium, cobalt, nickel) exposes the market to geopolitical risks and price volatility. Development of a robust domestic supply chain is paramount.
• Regulatory & Market Design Hurdles: While improving, the market design for BESS (e.g., clarity on revenue streams from various grid services, limitations on power exchange pricing like the ₹10/kWh ceiling) needs further refinement to ensure sustained profitability and investment.
• Environmental Concerns: The safe disposal and recycling of used batteries pose a significant environmental challenge that needs to be addressed with robust policies and infrastructure.

Future Outlook

• Capacity Expansion: The market is projected for exponential growth, with utility-scale projects dominating, aiming for approximately 74 GW / 411 GWh by 2032.
• Hybrid Systems Dominance: Solar-wind-BESS hybrid projects will become the norm for large-scale renewable energy integration, providing stable and predictable power to the grid.
• Localization of Manufacturing: Strong government incentives and increasing demand will significantly accelerate domestic cell and battery pack production, creating a more self-reliant industry.
• Skilled Job Creation: The rapid growth in BESS deployment across the value chain (manufacturing, project development, installation, operation & maintenance) is expected to generate significant employment opportunities.
• Diversified Applications: Beyond utility-scale, BESS adoption will grow in commercial & industrial (C&I) segments, microgrids, and EV charging infrastructure.

7. Conclusion

India’s BESS market is undoubtedly set for exponential growth, driven by ambitious renewable energy goals, strong supportive policies, and continuous technological advancements. Major players like Exide, Amara Raja, and Tata Power are leading with vertically integrated models, while emerging players like Oriana Power and Gensol Engineering are scaling up with significant project wins. Crucially, prominent renewable energy developers and EPC players such as Adani Green, Waaree Energies, and Sterling and Wilson Renewable Energy are now actively integrating and deploying BESS solutions, recognizing its pivotal role in the energy transition. With sustained cost reductions, a strong push for local manufacturing, and evolving regulatory clarity, India is poised to become a global leader in the BESS sector by 2030.

Relevance for Indian Stock Market Investors

The BESS industry in India represents a compelling long-term investment theme, deeply intertwined with the nation’s energy security, climate goals, and industrial growth. Investors should focus on companies with:

• Direct Manufacturing Capabilities: Companies involved in the domestic manufacturing of battery cells, packs, and modules (benefiting from PLI schemes), as they are at the foundational level of the value chain.
• Strong Project Pipeline/Order Book: Companies that are winning and executing large-scale BESS projects, either as developers, EPC contractors, or system integrators, as this indicates direct revenue generation from BESS deployment.
• Diversified Business Models: Companies that leverage BESS across various applications (grid-scale, commercial & industrial, EV charging, microgrids) to de-risk their portfolio and tap into multiple growth avenues.
• Strategic Vision: Companies, especially large conglomerates, that are actively adapting their strategies to incorporate BESS as a core part of their future growth, even if it’s not their primary manufacturing focus, as this signifies alignment with macro energy trends.

Disclaimer for Investors: Stock prices fluctuate constantly. The Current Market Price (CMP), P/E Ratio, and Net Profit figures provided below are illustrative and subject to real-time market changes. They are based on publicly available data as of early July 2025 (or latest reported financials). Investors must conduct their own thorough due diligence, analyze financial statements, management quality, competitive landscape, and future growth prospects before making any investment decisions.

References

The information presented in this report is synthesized from various industry reports, government publications, financial news, and company announcements. Key sources include:

• Market Research Reports: Reports from firms such as IMARC Group, MarkNtel Advisors, Mordor Intelligence, and ReportLinker, providing market size estimations, CAGRs, and future projections for the India BESS market.
• Government Publications: Documents and press releases from the Ministry of New and Renewable Energy (MNRE), Central Electricity Authority (CEA), and Press Information Bureau (PIB), detailing renewable energy targets, installed capacities, BESS projections (e.g., 74 GW/411 GWh by 2032), PLI schemes for ACC batteries, and Viability Gap Funding (VGF) initiatives.
• Industry Associations: Insights and reports from organizations like the India Energy Storage Alliance (IESA), providing industry perspectives on investment opportunities and market trends.
• Financial News Outlets & Company Filings: Articles from prominent financial news sources (e.g., Business Standard, NDTV Profit, Economic Times, PV-Magazine India) and company quarterly/annual reports and investor calls, which provide details on specific projects, strategic announcements, and financial performance of listed companies.
• Company Websites: Official websites of companies like Waaree, Sterling and Wilson Renewable Energy, and Oriana Power for details on their BESS product offerings and project portfolios.