EnergyWatts : October 2026
Monthly update on India’s energy storage market
India’s project-development energy storage tender issuance reached 12.2GW for FY2027 YTD. In September 2026, 0.98GW of storage capacity was tendered while cumulative operational battery energy storage system (BESS) capacity reached 10.2GWh.
Tendered Capacity
0.98GW energy storage system (ESS) capacity was tendered in September 2026, with standalone BESS accounting for the largest share at 0.68GW, followed by FDRE projects at 0.3GW. An additional 1.62GW was issued under engineering, procurement and construction (EPC) tenders. Two-hour systems led monthly BESS tender issuance at around 46%, while four-hour configurations accounted for roughly 14%. Re-tendered capacity represented 57% of total monthly issuance as procurers sought tariff realignment.
Awarded Capacity
In September 2026, 2,265MW of standalone BESS capacity was awarded across two tenders. MSEDCL awarded 2,000MW/4,000MWh of standalone BESS at a discovered tariff of INR2.38 lakh/MW/month (USD2,493/MW/month). SJVN awarded 265MW/530MWh of standalone BESS to NLC Renewables at INR2.35 lakh/MW/month (USD2,462/MW/month).
ESS Commissioning Updates
629MWh of BESS capacity was commissioned across projects in September 2026, including utility-contracted (509MWh), merchant (100MWh), and open-access (20MWh) segments.
ESS Pricing Trends
Lithium iron phosphate (LFP) cell prices rose marginally by 1.4% on a month-on-month basis to around USD54.4/kWh (INR5,191/kWh) in China following the reinstatement of a 2% consumption tax. The landed costs of LFP cells in India remain 14–23% above China’s after-tax prices.
Manufacturing Updates
Exide Energy Solutions completed phase-one commissioning of its 6GWh lithium-ion cell manufacturing facility in Karnataka. Odisha approved Aare Solar’s proposal to establish a 10GWh advanced LFP BESS assembly plant with an investment of INR1,050 crore.
Regulatory Updates
CTUIL revised the standalone BESS benchmark project cost to INR0.80 crore/MWh and specified a land requirement of 1.2 acres per 100MWh for GNA compliance. CERC adopted tariffs of INR3.12–3.13/kWh for SECI’s 1,200MW solar with 600MW/3,600MWh storage tranche, and DERC approved an INR2.99 lakh/MW/month levelised charge for BRPL’s 12.5MW/25MWh Shivalik BESS.
Table of Contents
- ESS tendering trends
- Storage EPC and power procurement tenders
- Capacity awarded in September 2026
- Capacity commissioned
- ESS pricing trends
- BESS manufacturing updates
- Storage deals and partnerships in September 2026
- Policy and regulatory updates
Enter the E-mail to download the full report: