India’s target of achieving 500 GW of non-fossil fuel energy capacity by 2030 will increasingly rely on the expansion of long-duration energy storage (LDES), according to a report by the India Energy Storage Alliance (IESA), in collaboration with Customized Energy Solutions (CES). Titled ‘Long-Duration Energy Storage: Global Outlook and India’s Deployment Pathway,’ the report highlights the proposed FY2028 Viability Gap Funding (VGF) framework as a key measure to accelerate LDES deployment. As India moves beyond adding renewable energy capacity towards improving its integration and utilisation, long-duration storage will play a vital role in maintaining grid stability, managing renewable energy variability and strengthening energy resilience as the country advances towards its net-zero goals.
The report highlights that , over eight months in 2025, India curtailed 2.3 terawatt-hours (TWh) of solar energy due to grid and storage constraints, underscoring the urgent need to enhance grid flexibility and maximise renewable generation. With increasing penetration of variable renewable energy, the ability to capture surplus electricity and dispatch it during periods of high demand or low generation is vital for grid reliability and economic efficiency.
According to the LDES Council, by 2040, the world will require around 8 terawatts (TW) of LDES capacity, equivalent to 140 TWh of storage. In comparison, just 117 GW was operational globally in 2025, indicating that deployment rates must increase nearly 50-fold to meet future requirements. Achieving this will require an estimated $4 trillion in capital investment, with the potential to unlock approximately $540 billion in annual system-wide savings. Despite these benefits, the current global project pipeline stands at only 0.22 TW, about 3% of the 8 TW target, signalling significant growth potential and the need for accelerated action.
Debmalya Sen, President, India Energy Storage Alliance, said, “India’s journey toward a clean and reliable energy future depends on our ability to integrate renewables efficiently and flexibly. Long-duration energy storage is the linchpin that will enable us to maximise renewable utilisation, enhance grid stability, and build resilience into our power system. With the right policy support, innovative business models, and technology-neutral investment, India can set a global benchmark for sustainable energy integration and system reliability.”
Within India, the Central Electricity Authority (CEA) projects a battery energy storage system (BESS) requirement of 34.5 GWh by FY2027. To date, 9.3 GWh has been commissioned, with another 195 GWh of projects awarded or under tender. However, most of this pipeline is concentrated on short-duration solutions, underscoring the need to diversify towards long-duration technologies that can provide grid balancing and resource adequacy over extended periods.
The report highlights a spectrum of emerging storage technologies positioned to address these requirements. Flow batteries are suited for daily storage cycles of eight to twelve hours, iron-air batteries offer multi-day flexibility, and solutions such as pumped hydro, compressed air, and thermal energy storage address large-scale and industrial needs. The optimal technology mix will depend on specific grid applications, project economics, and deployment environments.
Policy and financing frameworks will be instrumental in accelerating LDES adoption. The report notes the absence of a formal statutory definition for long-duration storage and a dedicated funding mechanism for projects providing eight hours or more of storage in India.
IESA recommends that policymakers, regulators, industry leaders, and investors collaborate to establish adaptive policies, create viable commercial models, and provide technology-neutral support. By accelerating investment in long-duration storage solutions, India can ensure the reliability, resilience, and economic viability of its evolving power system, unlocking the full value of its renewable energy transition.
India Energy Storage Alliance (IESA) is an industry alliance focused on advancing energy storage, electric mobility, green hydrogen and the wider clean energy ecosystem in India. Through industry collaboration, policy engagement and knowledge-sharing, IESA works to support the development and adoption of energy storage technologies and accelerate India’s clean energy transition.
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