BESS becoming the backbone of power capacity additions

India is undergoing a rapid clean energy revolution, aiming to deploy 500 GW of non-fossil capacity by 2030, of which it has already reached 250 GW. The country has pledged to reduce the emission intensity of its GDP by 45 percent by 2030, relative to 2005 levels. The incorporation of a significant amount of variable and intermittent renewable energy into the energy mix presents a challenge for maintaining grid stability and an uninterrupted power supply. The challenge with renewable energy sources arises from their varying nature over time, climate, seasons, or geographic location.

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The growth in power capacity has exposed critical grid stress points: Curtailment and congestion: Many states are experiencing curtailment of solar output, resulting in financial losses largely due to grid bottlenecks.

Balancing and flexibility gaps: With solar surging midday and demand peaking in the evening, coal plants are forced to ramp down and then ramp back up, reducing efficiency and lifespan. To address this, India is piloting BESS at coal plants to absorb excess solar energy during midday and release it later.

Storage mismatch: Current battery storage is minimal, falling drastically short of the estimated 61 GW by 2030 and 97 GW by 2032 needed. (Refer figure 1)

Cost and efficiency imperative: Yet, storage is becoming increasingly viable. Projects combining solar and storage now deliver firm power at ₹3-3.5/kWh and, with battery prices down 65 percent since 2021, co-located systems are cheaper and quicker to build than new thermal plants.

The details of India's total installed capacity as of August 2025 are shown in Table 1 below.

Energy Storage Systems (ESS) can store energy from renewable sources and be used during peak hours of the day.

Battery Energy Storage System (BESS)

A Battery Energy Storage System (BESS) is a technology that stores electrical energy as chemical energy and releases it when needed. It plays a vital role in modern power systems, particularly in integrating renewable energy sources such as solar and wind.

Purpose of BESS

BESS provides several key functions: Energy arbitrage - storing energy during low-demand (cheap) periods and supplying it during high-demand (expensive) periods.

Grid stability and frequency regulation - balancing supply and demand to maintain grid frequency.

Backup power - ensuring uninterrupted power during outages.

Battery cells/modules: The core component where energy is stored chemically.