India’s Battery Energy Storage Systems (BESS) sector witnessed notable developments in July 2025, marked by key policy advancements, project awards, and the release of new tenders. These milestones reflect the country’s growing focus on energy storage as a critical enabler of renewable energy integration and grid stability.
Policy and Regulatory Highlights
In a significant move, Andhra Pradesh released its Draft BESS Regulations, setting the stage for structured energy storage deployment in the state. The draft outlines technical standards, business models, and the regulatory framework necessary for smooth integration of BESS into the grid.
On the financing front, Indigrid partnered with the International Finance Corporation (IFC) to develop a 180 MW/360 MWh standalone BESS project in Gujarat, with IFC committing INR 4.3 billion in long-term financing. The partnership marks a boost in private and international investor interest in India’s energy storage infrastructure.
The National Committee on Transmission (NCT) completed a cost-benefit analysis comparing HVDC transmission lines versus BESS for a major renewable evacuation scheme in Rajasthan. The NCT ultimately chose the HVDC line, citing cost-efficiency. The HVDC project is expected to cost INR 36,000 crore, significantly lower than the INR 59,700 crore required for a BESS-based alternative.
In eastern India, the Bihar Policy for Promotion of New and Renewable Energy Sources 2025 was unveiled, setting an energy storage target of 6.1 GWh by 2030, comprising 4.5 GWh BESS and 1.6 GWh pumped storage projects (PSP).
The Central Government also announced its intention to deploy BESS in thermal power plants, aiming to improve grid reliability, reduce emissions, and support peak demand management. Meanwhile, Odisha released its pumped hydro policy, contributing to a diversified energy storage mix in the country.
Project Wins
July also saw substantial movement in project awards, with a total of 4.9 GWh of BESS capacity awarded along with 1.2 GW of solar projects:
- SJVN’s 375 MW/1500 MWh BESS tender in Uttar Pradesh was awarded to Energid and Patel Infrastructure at a competitive L1 tariff of INR 3.59 lakh/MW/month.
- NHPC’s 1200 MW solar + 600 MW/2400 MWh BESS project was awarded to Reliance Infra, JBM Renewables, PNC Infra, SAEL, and Navayuga Engineering at INR 3.13/kWh.
- NVVN’s 250 MW/1000 MWh tender, also in UP, was awarded at INR 6.64/kWh to Sunsure and Energid.
New Tenders Issued
A total of 8.1 GWh of standalone BESS tenders were issued in July:
- GUVNL floated a tender for 2 GW/4 GWh under the Viability Gap Funding (VGF) 2 scheme.
- MSEDCL followed with its own tender for 2 GW/4 GWh standalone BESS, also under the VGF 2 scheme.
- CESC issued a smaller tender for 40 MW/80 MWh standalone BESS capacity.
With momentum building across regulatory frameworks, financing, project execution, and tendering, July 2025 has reinforced India’s commitment to building a robust and sustainable energy storage ecosystem to support its clean energy transition.
