HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
India’s renewable energy sector to witness sharp rise in BESS deployment: Crisil Ratings
Sep-29-2026

Crisil Ratings in its latest report has said that India’s renewable energy (RE) sector is expected to witness a sharp rise in battery energy storage system (BESS) deployment, with 45-50 GWh of capacity likely to be commissioned over the current and next fiscals, compared with around 1 GWh as of last fiscal. The growth will be supported by a strong pipeline of projects under implementation and continued policy support. It said capacity additions could have been even higher; however, nearly 8-9 GWh of awarded capacity faces a higher risk of delay, somewhat moderating the overall deployment outlook.

The analysis report which covers bids awarded between fiscals 2024 and 2026 across nearly 100 RE developers, has further noted that the growing need for storage is a direct consequence of the rising share of RE to around 39% of India's installed power generation capacity and around 15% of energy generated last fiscal. However, by nature, the RE generation is intermittent which has increased the need for firm and peak-hour power supply. This has elevated the importance of energy storage solutions, particularly BESS. The requirement is especially acute for solar projects because electricity demand typically peaks in the evening, when solar generation is negligible. BESS can address this mismatch by storing surplus solar power during periods of high generation and supplying it during periods of elevated demand.

As per the report, in line with its objective of integrating a larger share of RE into the national power grid in a sustainable manner, the government has accelerated storage-linked auctions. Projects incorporating BESS accounted for nearly 40% of total auctioned capacity in fiscal 2026, up sharply from about 5% in fiscals 2024 and 2025. As a result, 50-55 GWh of BESS capacity is scheduled for commissioning across fiscals 2027 and 2028. Of this, around 40 GWh has been awarded through government-led auctions, where distribution utilities are the offtakers, while the remaining 10-15 GWh is expected to serve commercial and industrial consumers directly or be deployed in the merchant market.


  RELATED NEWS >>