India's Energy Storage Revolution: A 12-Fold Growth by 2031

India's energy storage capacity is set to increase 12-fold to 60 GW by 2031, driven by decreasing technology costs and government support. Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP) will play a crucial role, with efforts to indigenize production against international dependencies.

The Indian energy storage sector is set to witness unprecedented growth across the value chain, encompassing cell manufacturing and component production. According to a recent report by SBI Capital Markets, this expansion will be fueled by favorable government policies and rising demand.

India is expected to augment its energy storage capacity significantly, with projections indicating a 12-fold increase to 60 gigawatts by the fiscal year 2031-32. The report further emphasizes that the declining cost of energy storage technologies is a critical factor in their growing adoption.

Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP) have been identified as key technologies poised to capture the majority market share. BESS, in particular, is highlighted for its flexibility and technological advancements, promising lower tariffs and improved efficiency.

The current reliance on China for battery cells and components is a concern, especially amid geopolitical tensions. Recognizing the need for self-reliance, the Indian government has introduced production-linked incentives to boost domestic manufacturing capabilities.

India remains committed to reducing its dependence on fossil fuels, with a target of achieving 500 GW of non-fossil electricity capacity by 2030. The transition to renewable energy, including the exploration of green hydrogen, has gained global traction as part of climate change mitigation efforts.

(With inputs from agencies.)