Enterprise ESS system project financing options in India 2026

Should Goi promote other ESS Technologies in India?

Other ESS technologies: Currently in India, due to limited technological adoption, only BESS and PSP are being established on widescale. GOI should promote other ESS technologies such as supercapacitor, molten salt and thermochemical storage through production linked incentive schemes for manufacturers and viability gap funding for developers.

What is standalone ESS?

As the country rapidly scales up variable renewable energy (VRE), Standalone ESS offers a dispatchable solution to address the intermittency of renewables, support grid stability, and optimise energy usage.

How many GW of ESS are there in 2025?

In the first quarter of 2025, Standalone ESS tenders reached 6.1 gigawatts (GW), which accounted for 64% of all utility-scale energy storage tenders, which included all other use cases of ESS such as Standalone ESS, renewable energy + ESS, and Firm and Dispatchable Renewable Energy (FDRE).

How ESS works?

ESS, through storing and releasing excess energy, can bridge the two-way gap between generation and demand during peak and off-peak hours. This not only helps in improving grid stability and large-scale renewable energy integration but also helps in bringing down peak deficits and peak tariffs.

What are the challenges facing the ESS industry?

The Standalone ESS industry continues to face persistent challenges such as project cancellations, supply-chain constraints, weak domestic manufacturing and power purchase agreement delays. Players such as IndiGrid and HG Infra Engineering are focused on Battery + ESS (BESS).

What are the favourable policy changes for the ESS sector?

Some of these favourable policy changes for the ESS sector are as follows (2): ESS Legal Status: The Electricity (Amendment) Bill introduced in 2022 provided that ESS developers can lease or sell storage capacities to utility companies and can also themselves buy and store electricity for future sale.