India's energy storage market is projected to reach 174 GW by FY36 to support renewable energy targets. Major players are investing in large-scale battery and pumped-hydro projects, though success will depend on managing execution costs, raw material prices, and regulatory shifts.
India is rapidly expanding its renewable energy infrastructure to meet ambitious clean energy goals, with the focus shifting from generation to reliable power storage. The national energy storage market is estimated to reach 174 GW by FY36, comprising 94 GW from Pumped Storage Projects (PSPs) and 80 GW from Battery Energy Storage Systems (BESS). This transition is vital to managing the intermittency of solar and wind power, but it also demands significant capital and operational efficiency from leading energy companies.
Adani Green and JSW Energy Capacity Pipelines
Adani Green Energy Limited (AGEL) is focusing on its Khavda site in Gujarat, aiming for a renewable capacity of 50 GW by 2030. Within this, the company is developing plans for 10 GWh of battery storage and 5 GW of pumped-hydro projects. Having operationalized 1.4 GWh of BESS, the company has set a goal for 10 GWh of storage capacity by FY27.
JSW Energy is following a different trajectory with its 'Strategy 3.0', targeting 40 GWh of energy storage by 2030. The company has already locked in 29.6 GWh of capacity. To manage costs and comply with domestic content rules, JSW Energy is establishing a 5 GWh battery assembly plant in Pune. This backward integration is designed to reduce dependence on external suppliers, a common challenge in the hardware-intensive energy sector.
Vikram Solar and Competitive Dynamics
Vikram Solar is positioning itself as an integrated energy solutions provider with a target of 15 GWh of BESS capacity by FY30 and 30 GWh in the long term. The company is investing in a 5 GWh cell-to-pack assembly facility by FY27 and plans to develop 7.5 GWh of battery cell manufacturing by FY29. Their strategy includes the 'VION' brand to capture a wider share of the storage market.
While companies like Adani Green and JSW Energy lead in total pipeline size, Vikram Solar has historically demonstrated different return ratios. Investors should note that these ambitious expansion plans come with inherent business risks. The sector faces pressures from volatile raw material prices for battery manufacturing, the risk of project execution delays, and the need for high capital spending that could impact debt levels. Additionally, as the market for energy storage matures, regulatory frameworks regarding grid connectivity and battery standards will remain critical for profitability. The ability of these firms to maintain margins while scaling production will be the primary measure of their success in a competitive and capital-intensive environment.