India is likely to see a sharp rise in battery energy storage capacity addition to around 5 GWh in 2026, up from 507 MWh in 2025, driven largely by a backlog of projects under execution, according to a recent study by the India Energy Storage Alliance (IESA).
The report noted that while 2025 recorded relatively modest capacity additions, it was marked by unprecedented tendering activity. During the year, 69 tenders totalling 102 GWh were issued nearly equal to the cumulative tenders floated between 2018 and 2024, it said.
IESA said 2026 will mark a critical transition year for the sector as projects awarded since mid-2023 begin moving from tendering to commissioning. Typical execution timelines for such projects range between 18 and 24 months, the study added.
According to the report, nearly 60 GWh of storage projects are set to enter the implementation phase, following a record-breaking 2025 in which cumulative capacity under execution rose 84 per cent to 224 GWh.
However, the study cautioned that execution and financing will remain key challenges. “All eyes will remain on whether the performance of these projects is in line with what was committed,” said Debmalya Sen, President of IESA. He added that financing could prove difficult, particularly for projects awarded at lower tariffs, as a growing number of installations move into the operational phase.
The report said the coming year will test the sector’s ability to move from large-scale tendering to reliable execution, marking a decisive phase for India’s energy storage industry.
