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India’s Energy Storage Requirement to Reach 888 GWh by 2035-36

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India's energy storage capacity is projected to surge to 888 GWh by 2035-36, a significant increase from the current installed base of about 1 GWh. This projection aligns with the Central Electricity Authority's (CEA) estimates, anticipating 174 GW of energy storage capacity composed of 80 GW from Battery Energy Storage Systems (BESS) and 94 GW from Pumped Storage Projects (PSPs). The expansion is crucial to support renewable energy integration and grid stability. By 2026, BESS capacity is expected to cross 10 GWh, with lithium-ion battery manufacturing capacity scaling up to 110 GWh by 2030, strengthening India’s position in clean energy storage solutions.

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Key Facts

  • India's energy storage requirement is projected to reach 888 GWh by 2035-36.
  • Currently, installed energy storage capacity is about 1 GWh (around 0.78 GWh of BESS in Dec 2025).
  • The Central Electricity Authority (CEA) projects a total storage capacity of 174 GW by 2035-36, composed of 80 GW from Battery Energy Storage Systems (BESS) and 94 GW from Pumped Storage Projects (PSPs).
  • Installed BESS capacity increased from 0.78 GWh in December 2025 to 8.7 GWh in the first half of 2026.
  • BESS capacity is expected to surpass 10 GWh by the end of 2026.
  • Energy Storage System (ESS) tenders floated in India during the first half of 2026 amounted to 47 GWh; cumulative ESS tender pipeline is around 260 GWh.
  • India’s lithium-ion battery cell manufacturing capacity currently stands at about 2 GWh and plans to expand to about 110 GWh by 2030.
  • Manufacturing capacity for cell and battery pack assembly is projected to reach 180-200 GWh by the end of the decade (2030s).

Background & Context

Energy Storage Systems (ESS) play a vital role in storing electricity for later use, aiding in grid balancing and integrating variable renewable energy sources like solar and wind. There are two primary types of ESS in India: Battery Energy Storage Systems (BESS), which use rechargeable batteries, and Pumped Storage Projects (PSPs), which store energy by moving water between reservoirs at different elevations. The Central Electricity Authority (CEA), a statutory body under India’s Ministry of Power, provides planning and regulatory oversight for the electricity sector including energy storage projections. The scaling of India’s lithium-ion battery manufacturing capacity is a key enabler for supporting future energy storage needs and promoting domestic industry growth.

Why This Matters for Exams / Exam Relevance

Understanding India’s energy storage capacity goals and the role of systems like BESS and PSPs is crucial for exams focused on India’s energy sector, renewable energy policies, and infrastructure development. This topic intersects with questions on clean energy transition, technological solutions for grid stability, and government institutional roles such as that of the CEA. Familiarity with key statistics, timelines, and industry developments supports a comprehensive grasp of India’s evolving power sector landscape.

Points to Remember

  • India aims for 888 GWh energy storage capacity by 2035-36, combining battery and pumped storage.
  • CEA estimates 174 GW total capacity: 80 GW from BESS and 94 GW from PSPs.
  • BESS capacity rose from about 0.78 GWh in late 2025 to 8.7 GWh in early 2026, with expectations to exceed 10 GWh by the end of 2026.
  • Lithium-ion battery cell manufacturing capacity is planned to grow significantly from current 2 GWh to around 110 GWh by 2030.
  • ESS tenders indicate growing market momentum, with a 260 GWh tender pipeline as of mid-2026.
  • ESS and PSPs enhance renewable energy integration and ensure grid reliability.
  • The Central Electricity Authority (CEA) is the key government body authorizing and monitoring these projections.
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