India currently has 15,829 MW/51,106 MWh (about 16 GW/51.11 GWh) of battery energy storage system (BESS) capacity either under construction or in the bidding stage, Minister of State for Power Shripad Naik informed Parliament.

The Central Electricity Authority (CEA) estimates that the country will require 41.6 GW/208 GWh of BESS by FY30, while long-term projections put demand at 236 GWh by FY32. Medium-term requirements stand at 37 GWh by FY27. To aid this, the government approved a viability gap funding (VGF) scheme in September 2023 with Rs 3,760 crore allocated. Initially targeting four GWh by FY31, falling battery costs led to a revision to 13.22 GWh with assistance capped at Rs 48 lakh per MWh or 30 percent of project cost.

A second VGF scheme was cleared in June 2025 to develop 30 GWh, backed by Rs.5,400 crore from the Power Sector Development Fund. Of this, 25 GWh will be spread across 15 states, led by Rajasthan, Gujarat and Maharashtra, while NTPC will implement five GWh.