Battery energy storage systems (BESSs) are becoming a central focus in India’s renewable energy sector. As the grid grows more complex with rising renewable capacity and the emergence of prosumers, the need for reliable storage solutions has never been greater. Yet, high costs and limited domestic manufacturing continue to pose challenges. In the first episode of Renewable Watch Podcasts, Alok Brara, Publisher, and Khushboo Goyal, Associate Director, Renewable Watch, interacted with Saurabh Kumar, Vice-President, Global Energy Alliance for People and Planet (Global Energy Alliance) India, to understand the developments in this sector and know more about Global Energy Alliance’s work in this space. Edited excerpts…
Why are we hearing so much about BESS now? Why has it become a priority for utilities and the grid?
Energy storage is not a new priority. It has been on the agenda for quite some time. What is different now is that action has begun to happen on a significant scale. When India announced its target of 500 GW of non-fossil fuel capacity in 2021, the Central Electricity Authority estimated that approximately 47 GW of storage, for four to six hours, would be needed to integrate this renewable capacity effectively. This translates to nearly 250 GWh of storage. That was the starting point of India’s energy storage journey.
Initially, the focus was on pumped storage plants. These are well-established and have supported grid balancing for decades. However, their construction timelines are long, and they are not sufficient for the rapid growth of variable renewable energy in India. In the last two years, there has been a renewed emphasis on battery storage. The government has introduced viability gap funding to make projects financially feasible, which is essential given the high upfront costs of batteries.
The need for storage is not unique to India. Countries with significant renewable energy penetration are facing similar challenges. Vietnam, for instance, has a large renewable capacity but lacks flexibility in its grid. South Africa faces similar issues. The crisis in Portugal earlier this year further underscored the urgent need for storage solutions. This is not just about storage alone; grid flexibility is equally important. That is why the level of activity in this sector has accelerated.
What scale of storage uptake are we looking at in India?
The requirement is around 45-47 GW of storage capacity. At present, 5-6 GW of tenders are already live, with several projects progressing to advanced stages. Global Energy Alliance has been involved in initiating India’s first grid-scale BESS project at Delhi, known as the Kilokari project. It is relatively small at 20 MW with a two-hour duration, but it has laid the groundwork for larger-scale deployments. We are currently supporting six to seven utilities and aim to promote 3 GW ourselves. With these initiatives, India is steadily moving towards the level of storage necessary to stabilise the grid.
You mentioned the Kilokari project. Can you walk us through its conceptualisation and the applications for BRPL?
The Kilokari project has a history that dates back to my time with Energy Efficiency Services Limited. Significant groundwork was done during that period, and later BSES Rajdhani Power Limited (BRPL) took the project to the regulator. The project was not approved initially in 2021 and 2022 for two main reasons. The first was the high cost, which the regulator was not willing to pass on to consumers. The second was that the project design did not fully consider the multiple benefits standalone batteries can provide.
Our approach for the Kilokari project was unique because it included three revenue streams. The first was energy arbitrage, which allows storing electricity when it is inexpensive and supplying it during peak hours. The second was secondary ancillary services, which allow the grid operator to use the battery for balancing the grid. The third was capex deferral. The substation serves about 12,000 consumers, and space for expansion is limited. By installing a battery, we can defer the need for additional transformers and cables for four to five years. Monetising these benefits reduces the overall project cost.
The project was bid out through a reverse auction and the contract was awarded in late 2023. Regulatory approvals took about four to five months, and construction was completed in under six months. This is remarkable given that construction activity in Delhi was restricted during part of that period. The speed and efficiency of delivery demonstrated that grid-scale battery projects are feasible in India.
What are the key learnings from the Kilokari project?
The project has provided a wealth of insights. Our main objective was to demonstrate that grid-scale battery energy storage is viable in India, and we have achieved that. This is the first project approved by a regulator that allows a capacity charge. BRPL pays a monthly capacity charge of Rs 5.7 million per MW to the developer.
In the first two months, the battery performed two cycles per day as designed. In April 2025, it completed 42 out of 60 possible cycles and earned approximately Rs 9.5 million through arbitrage alone. The reduced number of cycles was due to lower-than-expected demand during the morning peak. As demand increases, we anticipate 50 to 55 cycles per month, which demonstrates the commercial viability of the system.
Another important learning is that the battery is connected to the state load dispatch centre through an optical fibre link to earn secondary ancillary service revenues. This enables the grid operator to use the battery for balancing purposes while compensating BRPL. Regulatory clarity is still required to make these services more attractive to developers and utilities. Overall, the project is a success story for grid-scale battery deployment in India.
Global Energy Alliance has been involved in multiple projects across India. How do you make these projects viable and bankable?
Our approach is focused on creating value and demonstrating feasibility. In the BRPL project, we helped design it with multiple revenue streams. We selected the best international technical specifications because India still lacks comprehensive battery safety standards. We developed standard bidding documents, agreements between developers and discoms, and regulatory templates.
At the time, battery prices were relatively high, making tariffs exceed Rs 10 per unit in some projects. To address this, Global Energy Alliance provided 70 per cent of the debt at a concessional rate of one per cent per annum. This combination of technical support and concessional finance made the project viable.
We also developed a battery management system that optimises operations. The software is currently being tested at Kilokari and will be made open-source by 2026 so that any utility can use it. Our model combines technical assistance, financial support, and operational guidance to ensure that projects deliver on their promises and create a demonstration effect.
After this project for BRPL, are you tying up with other discoms for similar projects across the country?
Yes, we have supported Tata Power in Mumbai for a 400 MWh project. In Delhi, we are collaborating with the power and transport departments on a project to support charging infrastructure for electric buses. Delhi currently has around 2,000 electric buses and plans to induct an additional five to six thousand over the next two to three years. The associated charging load will reach approximately 500 MW.
This project is unique because it integrates battery storage with electric vehicle (EV) charging infrastructure, addressing both grid stability and the concessional tariff issue. The success of Kilokari and the reduction in global battery prices have made short-duration storage financially viable without concessional capital. We are also exploring merchant battery projects and long-duration storage projects of six to eight hours, which are still commercially and technically untested in India.
India remains heavily dependent on battery imports and critical minerals such as lithium. How can long-term scalability and energy security be ensured?
Yes, supply chain constraints remain a challenge. This is not limited to batteries. Solar panels, EVs and other clean energy technologies face similar issues. Building resilience and domestic manufacturing capacity is a long-term process. The government is actively promoting Make in India initiatives and production-linked incentives. Measures such as rationalisation of tax rates and energy storage obligations are steps in the right direction. While India will continue to rely on imports in the short term, these efforts will gradually strengthen domestic manufacturing and energy security.
Is there a gap in the availability of skilled personnel to work on, operate and maintain battery projects? How can this gap be bridged?
There is currently a limited pool of engineers and technicians with experience in batteries, but this is changing rapidly. Government programmes, industry-led initiatives and academic institutions are all building capacity. In the past, the skilled workforce in renewable energy was also limited, but now the sector has a much larger talent pool.
In the BESS space as well, as the market grows, the demand for skilled professionals will grow. Organisations like Global Energy Alliance also support skill development and capacity building, ensuring the sector has access to the required expertise.
Tune in to the full podcast on YouTube, Spotify and Apple Podcasts to know more about Global Energy Alliance’s mission and initiatives in India.
