Mumbai, Aug. 28 -- Industry stakeholders have warned that rising renewable capacity has created an immediate need to scale storage systems, highlighting a substantial gap between demand and domestic manufacturing capability. They noted that India's domestic cell manufacturing accounts for less than one per cent, or two GWh, of an approximately 260 GWh demand pipeline from competitive tenders in 2026. The shortfall, they said, threatens the ability to firm intermittent generation as capacity additions accelerate.
Battery energy storage systems (BESS) and pumped storage projects are increasingly important as the power system seeks to balance solar generation with peak demand and rising electricity consumption. Stakeholders argued that batteries and other storage technologies are central to addressing intermittency and unlocking further renewable growth. The need is driven by both system reliability and commercial optimisation.
Industry leaders cautioned against using import dependence as a reason to slow deployment, saying the grid needs storage now rather than waiting for fully indigenous cells. One executive warned that domestic supply is running well behind demand and that the gap will persist for years rather than a few quarters. Policymakers and project developers were urged to prioritise deployment while simultaneously expanding manufacturing.
National Thermal Power Corporation (NTPC) has been allocated five GWh of battery energy storage capacity under the Viability Gap Funding scheme to optimise existing thermal and transmission assets and to ensure reliable supply during non-solar hours. Research firm Wood Mackenzie estimated it would take more than a decade for India to achieve self-sufficiency in battery storage, citing a structural reliance on imports. The firm noted that India had two GWh of commissioned cell manufacturing capacity as of 2026 compared with 2,695 GWh in China. China was said to control between 85 per cent and 98 per cent of global capacity across major supply chain components, prolonging import dependence.
Published by HT Digital Content Services with permission from Construction World.