BESS Tenders for Grid-Scale Energy Storage Adoption in India

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Introduction

India’s energy landscape is undergoing a transformative shift. With over 50% of its installed power capacity now coming from non-fossil fuel sources—five years ahead of its 2030 target—the country is rapidly embracing renewable energy. However, the intermittent nature of solar and wind power presents significant challenges to grid reliability and energy dispatch. Battery Energy Storage Systems (BESS) have emerged as a critical solution to these challenges, and government-led tenders are playing a pivotal role in accelerating their adoption.

Why Grid-Scale Energy Storage Is Essential

India’s peak power demand surpassed 250 GW in 2024 and continues to rise. To maintain grid stability while integrating increasing volumes of renewable energy, robust energy storage solutions are essential. BESS enables:

  • Load balancing during peak and off-peak hours
  • Frequency regulation and grid stability
  • Renewable energy dispatchability, ensuring power availability even when generation is low

To meet its ambitious target of 500 GW of non-fossil fuel capacity by 2030 and Net-Zero emissions by 2070, India must deploy scalable and reliable energy storage solutions.

Government Initiatives and Policy Support

India has introduced several strategic policies and schemes to promote BESS deployment:

  1. Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACC)
    • ₹18,100 crore allocated to boost domestic battery manufacturing.
  2. National Framework for Energy Storage Systems (2023)
    • Regulatory and financial roadmap for scaling energy storage.
  3. Green Open Access Rules (2022)
    • Enables commercial and industrial (C&I) consumers to procure renewable energy, making BESS financially viable for private developers.
  4. Energy Storage Obligation (ESO)
    • Mandates DISCOMs to procure a percentage of power from storage sources under Renewable Purchase Obligations (RPO).
  5. Mission LiFE & Circular Economy Push
    • Encourages reuse and recycling of battery components for sustainability.
  6. Viability Gap Funding (VGF) Schemes
    • ₹5,400 crore allocated to support 30 GWh of BESS capacity by 2028.

Role of Tenders in Driving Adoption

BESS tenders are reshaping India’s energy storage market by:

  • Creating competitive pricing through tariff-based and VGF-backed bidding
  • Enhancing transparency and investor confidence
  • Encouraging innovation in hybrid models (solar + wind + storage) and standalone storage projects

Notable Tenders and Projects

  • Gujarat’s 2000 MW/4000 MWh standalone BESS tender (July 2025)
  • SECI’s 1000 MW/2000 MWh tender
    • Attracted bids from JSW Neo, Tata Power, ReNew Power
  • JSW Neo Energy’s winning bid
    • ₹10.84 lakh/MWh/year, showcasing cost competitiveness

These tenders are structured with fixed payment models and milestone-based disbursements, reducing market uncertainty and risk.

Key Industry Players

Several domestic and international companies are actively participating in India’s BESS market:

  • JSW Neo Energy
  • Tata Power Solar
  • ReNew Power
  • Greenko
  • NTPC Renewable Energy Ltd.
  • Waaree Energies
  • Fluence (international)

Projects range from 250 MWh to 4000 MWh, indicating large-scale deployment and growing market maturity.

Challenges and Opportunities

Challenges

  • High Capital Expenditure (CapEx)
    • Initial costs remain high, with limited subsidies.
  • Technology Risks
    • Battery degradation and lack of recycling infrastructure.
  • Policy Gaps
    • Inconsistent state-level policies and unclear revenue models.

Opportunities

  • Localization of Manufacturing
    • Reduces costs and boosts domestic capabilities.
  • Circular Economy Models
    • Promotes sustainability through reuse and recycling.
  • Green Hydrogen Integration
    • Opens new avenues for storage-linked clean energy solutions.
  • Open Access Expansion
    • Encourages private sector participation.

Future Outlook

According to the Draft National Electricity Plan (2023), India aims to deploy 50 GW of BESS capacity by 2030. Future tenders will likely bundle generation and storage to deliver firm, dispatchable power. Additionally, private C&I sectors are exploring behind-the-meter storage, and DISCOMs are considering storage for demand-side management.

The next frontier includes hybrid RE + BESS + green hydrogen projects, which promise to revolutionize India’s clean energy ecosystem.

Conclusion

India’s clean energy transition hinges on the successful deployment of grid-scale energy storage. BESS tenders, backed by robust policy frameworks and competitive bidding, are laying the foundation for a resilient, sustainable, and future-ready power grid. As costs decline and adoption accelerates, BESS will be instrumental in achieving India’s renewable energy and climate goals.

Location: India

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