Can the Rising BESS Market Dent the Prospects of Wind Projects in India?

With the sharp rise in Battery Energy Storage System (BESS) tenders and a visible strategic pivot by developers, India’s wind energy market appears to be entering a more competitive phase. As the government pushes to make renewable power more “firm” through the integration of storage, the share of BESS in India’s clean energy landscape is expanding rapidly.

The key question, however, remains: Can BESS or solar-plus-storage meaningfully dent the prospects of wind energy projects and companies in India?

Shift in Developer Investment Strategy

Recent investment trends suggest that some large Indian renewable energy companies are increasingly favouring BESS and solar+BESS configurations over standalone wind projects.

One of the most notable examples is ReNew, which recently recalibrated its under-construction portfolio. In its investor presentation, the company stated that it reduced overall capex by approximately ₹60 billion by altering project configurations.

It reduced its wind capacity under construction from 2.5 GW to around 850 MW, while increasing solar capacity from 4.4 GW to 5.2 GW. Simultaneously, BESS capacity was expanded significantly — from around 300 MW to 5.5 GWh.

The company said the move was aimed at de-risking execution and improving revenue visibility by pivoting toward solar-plus-storage solutions. The emphasis, according to management, was on ensuring greater certainty in revenue realization.

Concerns Around DSM and Wind Exposure

While other developers have not explicitly downsized their wind portfolios, several have flagged structural concerns that disproportionately affect wind projects.

For instance, ACME Solar Holdings has pointed to the potential impact of new Deviation Settlement Mechanism (DSM) regulations. Management indicated that wind projects could face higher exposure under the evolving regulatory framework compared to solar.

Speaking during a recent earnings call, CEO Nikhil Dhingra noted that DSM regulations are under active discussion at industry forums and within the Power Ministry and MNRE. He highlighted that wind projects may face greater challenges due to higher variability, though the regulations are being implemented in phases through 2030.

He further added that the growing deployment of batteries could mitigate instability caused by renewable generation. Policymakers are considering multiple solutions, including prospective implementation of DSM norms and the installation of batteries at existing plants to manage unpredictability in solar radiation and wind flows. There are also discussions around allowing excess stored energy to be sold in the merchant market to compensate developers.

Management indicated that DSM’s impact on solar would likely be less severe compared to wind.

Wind Sector: Still Holding Ground

Despite concerns, official data does not yet suggest a decline in wind installations. According to the Ministry of New and Renewable Energy (MNRE), India added 34.95 GW of solar capacity during the first ten months of FY26 (April 2025–January 2026). During the same period, wind additions reached 4.6 GW — a significant volume in absolute terms, even if lower than solar.

The rise in hybrid tenders could also be influencing project structuring, with wind often forming part of wind-solar hybrid bids. Wind OEMs remain confident about their outlook.

Suzlon reported record quarterly deliveries of 617 MW in Q3 FY26 — its highest-ever quarterly execution since inception. The company also announced a record order book of 6.4 GW and outlined plans to expand manufacturing capacity to 5 GW annually.

Meanwhile, Inox Wind acknowledged some execution delays on the customer side but maintained a positive demand outlook.

Direct Response from Wind Industry

During an earnings call, Suzlon’s CEO JP Chalasani directly addressed whether solar+BESS could materially impact wind prospects. He argued that only a sharp decline in battery prices could alter the competitive equation.

He noted that wind tariffs typically range between ₹3.6–₹3.9 per unit, with a large share of generation occurring during evening peak hours. By contrast, while solar tariffs may be lower, the addition of battery storage significantly increases overall cost. According to him, unless battery costs fall below roughly ₹1.2 per kWh, solar-plus-storage would struggle to replace wind purely on tariff competitiveness.

He also emphasized grid stability considerations, stating that a complete substitution of wind by solar-plus-storage is unlikely from a system-balancing perspective.

BESS: A Rapidly Expanding Ecosystem

The BESS segment has opened opportunities across the value chain — from manufacturers and system integrators to EPC firms and project developers. Although India remains dependent on China for battery cells and critical components, domestic manufacturing and integration capabilities have expanded meaningfully over the past two years. 

Standalone BESS and solar+BESS projects are increasingly visible across tender pipelines. Government support mechanisms such as Viability Gap Funding (VGF) and transmission charge waivers have accelerated adoption. In the past two years, alongside solar and wind, BESS has emerged as a central pillar of India’s renewable strategy, backed by coordinated policy and market momentum.

Conclusion

While BESS and solar-plus-storage are clearly reshaping investment flows and project configurations, current data does not indicate a structural decline in wind deployment. Instead, the sector appears to be entering a phase of hybridisation and strategic recalibration.

The coming years will determine whether more developers follow ReNew’s partial pivot away from standalone wind — or whether falling battery costs and regulatory evolution redefine the competitive balance between wind and storage-linked renewables in India.