EnergyWatts : September 2026
Monthly update on India’s energy storage market
Date of release: September 2026
Report by JMK Research and IEEFA
India’s cumulative project-development energy storage pipeline reached 11.9GW for FY2027 YTD. In August 2026, 3.16GW of storage capacity was tendered, with standalone battery energy storage systems (BESS) accounting for the entire share. Operational energy storage capacity reached 9.6GWh of BESS in FY2027 YTD.
Tendered Capacity
- 3.16GW energy storage system (ESS) capacity was tendered in August 2026, with Standalone BESS accounting for the largest share at 3.16GW. An additional 192MW was issued under engineering, procurement and construction (EPC) tenders.
- The 4-hour configuration dominated at ~87% of monthly tenders, while the 2-hour and 2.5-hour formats maintain steady traction.
Awarded Capacity
- In August 2026, 3,250MW of ESS capacity was awarded across four tenders, comprising 2,500MW of firm and dispatchable renewable energy (FDRE) and 750MW/2,100MWh of standalone BESS.
- SECI awarded 1,500MW of FDRE and 1,000MW of round-the-clock thermal mimic capacity, while WBSEDCL and GUVNL awarded 300MW and 450MW of standalone BESS capacity respectively.
ESS Commissioning Updates
556MWh of ESS capacity was commissioned across projects in August 2026.
ESS Pricing Trends
Lithium iron phosphate (LFP) cell prices fell marginally on a month-on-month basis to around US$53.57/kWh (INR5,114/kWh) in China. The landed costs of LFP cells in India remain 14–23% above China prices, reinforcing the case for local manufacturing.
Manufacturing Updates
India’s manufacturing footprint added 2.5GWh of downstream BESS manufacturing and integration capacity in August 2026 alongside a 3GWh facility inauguration. Powertrac Group broke ground on a planned 10GWh facility.
Regulatory Updates
The Ministry of Power allowed renewable energy projects to use curtailed temporary general network access (T-GNA) power to charge co-located BESS. The Western Regional Power Committee (WRPC) directed utilities to ensure automatic disconnection or switching of BESS and pumped storage projects at 49.50 Hz.
Table of Contents
- ESS tendering trends
- Capacity commissioned
- ESS pricing trends
- ESS manufacturing updates
- Storage deals and partnerships in August 2026
- Policy and regulatory updates
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