India's energy storage requirement is projected to rise from 87 GWh in 2027-28 to 888 GWh by 2035-36, according to recent government data. This massive expansion, driven by Battery Energy Storage Systems and Pumped Storage Plants, is essential to support the country's growing renewable energy integration. Investors should track infrastructure spending and energy equipment suppliers as this long-term trend unfolds.
India is set for a massive transition in its power sector as energy storage requirements are projected to grow more than tenfold over the next decade. According to the latest data from the Ministry of Statistics and Programme Implementation (MoSPI), the nation’s storage capacity demand is expected to climb from 87 GWh in the 2027-28 fiscal year to 888 GWh by 2035-36. This growth is a critical part of the government's plan to manage a more unstable renewable energy supply, such as solar and wind, by storing excess power for use during periods of low generation.
Scaling Storage Capacity Through BESS and PSPs
The government's roadmap relies heavily on two specific technologies: Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSPs). The MoSPI report indicates that by 2035-36, the country aims to have 94 GW of capacity from Pumped Storage Plants and 80 GW from Battery Energy Storage Systems. Pumped storage acts like a giant water battery, using electricity to pump water to higher reservoirs when power is cheap and releasing it to generate electricity when demand is high. Battery systems provide a faster, more flexible response to grid imbalances. This transition is important for investors because it signifies a long-term capital commitment to infrastructure, which could benefit domestic equipment manufacturers, engineering and construction firms, and power utility companies involved in grid modernization.
Broader Infrastructure Trends
Beyond the power sector, the latest performance monitoring updates also highlight steady growth in digital and physical connectivity. The country has reached a milestone of 8.55 lakh mobile towers, reflecting a 3.7% year-on-year increase, while Base Transceiver Stations have grown by 7.4% to 32.25 lakh. This growth in digital infrastructure supports the rising demand for connectivity across the nation, with tele-density now at 93.26%. Additionally, the rise in electronic toll collection, which saw a 39.7% year-on-year increase in transactions to 88 crore as of May 2026, points to the increasing adoption of digital services in physical logistics.
For investors, the key monitorable will be the actual execution and commissioning speed of these large-scale storage projects. While the projected demand is substantial, the final impact on companies will depend on their ability to secure contracts, manage raw material costs for batteries, and navigate the geological or regulatory challenges often associated with large hydro-based pumped storage projects. The pace of these infrastructure rollouts will dictate the revenue growth for players in the power equipment and utility space over the coming decade.