India's Standalone Battery Energy Storage System (BESS) Capacity Allocation 2025

under execution stress

India's battery energy storage sector is rapidly expanding but facing financial and execution stress. Nearly 75% of the allocated two-hour standalone battery storage capacity in 2025 falls below viability benchmarks due to aggressive bidding, collapsing tariffs, and rising supply-chain costs. The sector allocated around 10.4 GW of standalone BESS capacity in 2025, with cumulative energy storage tendered capacity surging from 6.8 GW in 2018 to 90.7 GW by 2025. Execution delays of 9 to 18 months are expected due to financial closure, procurement, and commissioning challenges. Financing conditions are stringent, with lenders seeking IRRs of 15-20%. The sector is heavily dependent on imported lithium-ion cells from China, with rising costs and export rebate withdrawals increasing landed battery costs in India. Only 46.3% of the allocated capacity was awarded to developers with high execution readiness.