Independent Energy Storage Projects Account for Nearly 65% of India's Q1 2025 Tenders, Boosted by Government Support

According to the latest report from IEEFA and JMK Research & Analytics, Indian agencies have tendered 6.1 GW of independent ESS capacity.

Charith Konda, a mobility and new energy expert at IEEFA, explained that ESS are "flexible, independent assets that can respond to grid demand rather than generator limits, providing grid stability and optimizing energy usage."

The Viability Gap Funding (VGF) program in India is a key driver, offering up to 30% capital support for independent BESS projects.

Prabhakar Sharma, Senior Advisor at JMK Research & Analytics, stated that the VGF program addresses the high initial capital expenditure of such projects, with recent battery storage system tenders in Maharashtra and Rajasthan securing prices as low as INR 219,000-221,000 per MW/month ($2,561-$2,586), nearly 40% lower than similar non-VGF projects.

The growing interest in the independent ESS market is attracting both established players like JSW Energy, Greenko, and Torrent Power, as well as newcomers such as Pace Digitek, Oriana Power, Kintech Synergy, and Bondada Engineering.

However, the report warns of potential challenges, including delays or cancellations in power sales and storage agreements, as well as structural obstacles.

Sharma emphasized that with continued policy support, simplified regulatory processes, and targeted investments in domestic manufacturing and supply chains, the sector can overcome early challenges and realize its full potential.