India’s ESS Shift: 9.2 GWh Set for Commissions in 2026 After 130+ GWh of Tenders in 2025

After issuing more than 130 GWh worth of storage tenders in 2025, an aggregate capacity of approximately 9.2 GWh is now set to be commissioned in 2026, comprising a total of 12 energy storage systems (ESS) projects. A new report by the India Energy Storage Alliance (IESA) reveals that, of these, nine projects are standalone BESS, two are solar-plus-BESS projects, and one is an FDRE project integrated with an energy storage system.

Data from the India Energy Storage Alliance (IESA) shows that while 65 battery energy storage system (BESS) tenders totaling over 58.7 GWh and seven pumped storage project tenders aggregating around 74 GWh were floated last year, only 12 storage projects—largely awarded since mid-2023—are expected to reach commissioning next year. This takes the total energy storage projects that are set to be commissioned in 2025 to more than 130 GWh. The contrast highlights both the scale of India’s storage pipeline and the operational challenge of converting record tenders into commissioned assets.

Sharing a state-wise overview, IESA found that Gujarat is expected to account for the largest share of commissioned BESS capacity in 2026, followed by Maharashtra and Rajasthan. Each of these states is projected to commission around 1.5 GWh of BESS capacity during the year.

Out of the energy storage projects, two are expected to be commissioned as early as January 2026. Among these, one project is led by GUVNL with a capacity of 360 MWh, while another is led by KREDL with a capacity of 4.5 MWh. In 2025, NTPC took initial steps in this direction by issuing two EPC BESS tenders with a combined capacity of 5 GWh at its thermal power stations.

Where Are the BESS Tenders Headed in 2026?

A new energy storage model—thermal-plus-BESS—is expected to take shape from 2026. In 2025, NTPC took initial steps in this direction by issuing two EPC BESS tenders with a combined capacity of 5 GWh at its thermal power stations. In 2026, this steep decline is expected to moderate, supported by maturing price discovery, tempered cost reductions, and the introduction of policy and local-content requirements. Further, tariff trends in the standalone BESS segment are expected to stabilise in 2026, according to IESA.

This trend was further highlighted by tariff discovery for a two-hour, two-cycle standalone BESS project under VGF Tranche-I, with around 30% VGF support, which stood at INR 2.26 lakh/MW/month in 2024. Later in 2025, for projects with a similar configuration but reduced VGF support of around 16%, tariffs declined sharply to INR 1.48 lakh/MW/month, reflecting a year-on-year reduction of approximately 35%.

Key Achievements in the Energy Storage Sector in 2025 

In the BESS segment, the report also revealed that India saw an expansion of VGF-supported BESS projects to 22 projects in 2025. These BESS projects achieved a cumulative capacity of 28.5 GWh across various states in India. Of these, 14 projects, with a cumulative capacity of 21.95 GWh, have already been awarded to various developers. The BESPA and PPAs signed in 2025 resulted in 27 energy storage projects moving into the under-construction stage.

These included 17 standalone BESS tenders (of which three were EPC BESS tenders), three solar-plus-BESS tenders, and seven FDRE tenders, including one RTC tender. The combined energy storage capacity of these projects is approximately 24.5 GWh, with commissioning expected before 2027.

In 2025, a total of 32 projects were awarded, representing an aggregate energy storage capacity of approximately 43 GWh, including a few FDRE projects whose capacity remains unknown at this stage. Additionally, seven pumped storage projects (PSPs) were issued in 2025, with a combined energy storage capacity of approximately 74 GWh.