EnergyWatts: August Monthly update on India’s energy storage market
Date of release: August 2026
Report by JMK Research and IEEFA
Tendered Capacity
- 1.7GW energy storage system (ESS) capacity was tendered in July 2026, with Standalone BESS accounting for the largest share at 1.1GW, followed by firm and dispatchable renewable energy (FDRE) projects at 0.5GW and renewable energy (RE) + Storage with 0.1GW. An additional 1.02GW was issued under engineering, procurement and construction (EPC) tenders.
- The 2-hour configuration continues to dominate at ~85% of monthly tenders, while the 4-hour format maintains steady traction supported by the Ministry of Power’s viability gap funding (VGF) guidelines.
Awarded Capacity
- SECI awarded 1.3GW of PHS capacity across a single tender to three developers – Greenko Energies, Tata Power and Torrent Energy Storage.
- NTPC awarded Bondada Engineers 16.7MW of VRFB capacity under an EPC contract.
ESS Commissioning Updates
710 MWh of standalone BESS capacity was commissioned across 3 projects in July 2026.
ESS Pricing Trends
Lithium iron phosphate (LFP) cell prices fell marginally on a month-on-month basis to around US$54.59/kWh (INR5,209/kWh) in China. The landed costs of LFP cells in India remain 13–23% above China prices, reinforcing the case for local manufacturing.
Manufacturing Updates
India’s manufacturing footprint added 6.35GWh of downstream BESS manufacturing and integration capacity in July 2026. The Ministry of Heavy Industries issued a global tender for a 10GWh grid-scale advanced chemistry cell (ACC) with production-linked incentive (PLI) facility.
Regulatory Updates
- The Central Electricity Authority (CEA) notified technical standards for BESS effective April 2027 and issued an advisory mandating 100% grid-forming (GFM) inverters for projects of 50MW and above.
- The Ministry of New and Renewable Energy (MNRE) allowed distribution companies (DISCOMs) to deploy surplus PM Surya Ghar incentive funds allocated to DISCOMs for BESS grid integration at DISCOM integrated rooftops, residential rooftops, and high rooftop penetrating areas.
Table of Contents
- ESS tendering trends
- Capacity commissioned
- ESS pricing trends
- ESS manufacturing updates
- Storage deals and partnerships in July 2026
- Policy and regulatory updates
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