Key Drivers of Growth
India’s battery energy storage system market is experiencing growth thanks to many key factors. Firstly, the country’s adoption of renewable energy technologies (solar and wind) has necessitated storage solutions. As of March 2024, India attained a cumulative installed energy storage capacity of 219.1 MWh. That shows its integrating storage with renewable sources. It resolves the intermittent nature of renewables for a stable power supply. Moreover, the demand for grid stability and peak load management has signified battery energy storage systems.
Such systems provide rapid frequency response for grid equilibrium amidst fluctuating energy inputs. Apart from that, India’s focus on sustainable energy solutions, owing to regulatory standards and carbon reduction goals, has propelled the market. The National Manufacturing Mission and heightened production-linked incentive schemes help bolster the renewable energy ecosystem. Remember, that includes incentives for lithium-ion battery manufacturing as well. Collectively, such measures help expand India’s battery energy storage system market.
Market Segments and Applications
India’s battery energy storage system market covers many sectors and applications. Industrial and utility-scale projects are key. Large-scale installations (greater than 1 MW) account for more than 70% of the market. The projects help integrate renewable energy sources and boost grid stability. Emerging applications are also important. There is an uptick in adopting battery storage solutions in the commercial and residential sectors, given the need for power and energy cost savings.
The EV segment is an opportunity. For example, companies like Reliance Industries secure government incentives to produce EV batteries to strengthen local manufacturing of chemistry cells. Microgrids in remote or underserved regions utilize battery storage to deliver reliable and sustainable power solutions. Without a doubt, such applications indicate the scope of India’s battery energy storage system market and its role in the nation’s energy transition.