India’s Energy Storage Sector Set for INR 4.79 Lakh Crore Investment by 2032

India’s energy storage industry is poised for a fivefold expansion between 2026 and 2032, with an estimated investment of INR 4.79 lakh crore. This growth is driven by increasing demand for battery energy storage systems and pumped storage plants, essential for integrating renewable energy into the grid and ensuring stability.  

Key highlights of the investment:  
- The National Electricity Plan projects a requirement of 73.93 GW of energy storage capacity by 2031-32, including 26.69 GW from pumped storage plants and 47.24 GW from battery energy storage systems.  
- By 2026-27, India will need 16.13 GW of storage capacity, with 82.37 GWh of energy storage, comprising 7.45 GW from pumped storage and 8.68 GW from battery systems.  
- Government initiatives, including Viability Gap Funding for 13,200 MWh of battery storage by 2030-31, are expected to accelerate deployment.  
- States such as Gujarat, Uttar Pradesh, and Madhya Pradesh, along with public sector companies like SECI, NTPC, and SJVN, have issued tenders for standalone storage and renewable energy dispatch solutions.  

Industry leaders emphasize that energy storage is crucial for India’s transition to a net-zero economy, supporting peak power management and grid stability. The cost of storage systems has significantly declined, making large-scale adoption more viable.  

Sources: India Energy Storage Alliance, Economic Times, Moneycontrol, Saur Energy International