The India battery energy storage systems market is expected to rise at a CAGR of approximately 10.5% during the forecast period of 2022-2027. The COVID-19 pandemic has a considerable impact on the market due to crashed power demand from industrial and commercial sector caused by the lockdowns. For example, out of 489 manufacturing firms in India, 51 had to close their operations due to the pandemic, which reduced the overall power demand in the sector. The Indian battery energy storage systems market is propelled by mainly two drivers, the declining cost of energy storage technologies, and the feature of providing grid flexibility. However, the market growth can be hindered by the uncertainty in the rules governing the energy storage operations and ownership.
- The Lithium-ion battery type is expected to dominate the market during the forecast period due to its favourable chemistry and low average cost for energy storage projects.
- The culminating growth of renewable energy projects in the country is the biggest opportunity for battery energy storage systems in India. India has set a target to reach around 500GW of renewable capacity by 2030. Though many renewable power generation projects are in progress, but it's not practically possible to achieve the target without the interference of energy storage solutions as they offer a flexible grid integration opportunity. Thus, the renewable power projects create significant opportunities for the market.
- The government initiatives to promote the energy storage deployment in India are likely to steer the market upto the greatest extent.
Key Market Trends
Lithium-ion Battery Segment Expected to Dominate the Market
- The Lithium-ion batteries are highly demanded in renewable power projects. Many renewable industry experts believe that the renewables growth in india is incomplete without energy storage systems, and lithium batteries offer the most cost-effective way of such an integration.
- The Lithium solar batteries are a rechargeable energy storage solution that can be paired with a solar power system to store excess solar power. India's installed solar energy capacity stands at around 40 GW in 2021, and the government has planned many projects to reach the ambitious target to increase the share to 100GW by 2022. But due to the intermittency of solar power supply, many private players have planned solar plus energy storage projects to ensure continuous supply of power to the grid.
- In December 2021, Tata Power Solar Systems Limited (Tata Power Solar) bagged a solar plus storage project in Chattisgarh, from Solar Energy Corporation of India Ltd. (SECI). The project includes EPC services for a 100MW solar power plant with a utility-scale Battery Energy Storage System (BESS) of 120MWh capacity. The total outlay of the project was approximately ÌNR 945 crore. It is likely to get commissioned in the second half of 2023.
- The Ramagiri Solar-Wind-Hybrid project integrated with battery energy storage systems is a perfect example of energy storage development in India. The project, located in Anantapur, Andhra Pradesh, is owned by Solar Energy Corporation of India (SECI). It is currently under construction and is expected to complete by 2022.
- Due to such developments, the lithium-ion battery segment is expected to have the largest share during the forecast period.
Government Initiatives Expected to Drive the Market
- The Indian Battery Energy Storage market is likely to be driven more by the government plans to ease the implementation of the technology.
- The power capacity additions in India were not as per the expectations of the Indian government, and thus government is putting effort to boost the sector with the inclusion of various thermal, and renewable projects. As of FY 2020-21, India has a renewable energy installed capacity of around 92.54 GW.
- Out of the total renewable installed capacity, the installed battery energy storage capacity in India is around 20MW, as of 2021, and the required capacity is estimated to be around 38GW by 2030. A number of projects have been planned to integrate energy storage systems in renewable power projects by the Indian government and affiliated entities.
- In December 2021, NTPC Renewable Energy Ltd. (NREL) planned to float an engineering procurement and construction (EPC) tender to develop a 3 GW renewable energy project, such as a solar or wind power project, with battery storage system, by 2022. The decision will help India to achieve the target of having 175 GW of renewable energy by 2022, including 100 GW of solar and 60 GW of wind energy.
- In July 2021, the Solar Energy Corporation of India (SECI) floated a tender for the development of 2000MWh of standalone energy storage projects. The government entity will enter into a long-term agreement with the selected bidders for about 25 years. This is believed to be the largest energy storage tender floated ever in India.
- Owing to these developments, the government policies are expected to be the most significant driver of the market in the near future.
The India battery energy storage systems market is consolidated. Some of the key players in this market include Toshiba Corp, AES Corp, Exide Industries Ltd, Delta Electronics, Inc, and Amara Raja Group.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5.2 Connection Type
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 AES Corp
6.3.2 Exide Industries Ltd.
6.3.3 Delta Electronics, Inc.
6.3.4 Toshiba Corp.
6.3.5 Amara Raja Group
6.3.6 Panasonic Corporation
A selection of companies mentioned in this report includes:
- AES Corp
- Exide Industries Ltd.
- Delta Electronics, Inc.
- Toshiba Corp.
- Amara Raja Group
- Panasonic Corporation