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India Needs Rs 4 Lakh Crore Investment in Energy Storage by FY32: CareEdge Report
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News18•28-09-2026, 14:15
India Needs Rs 4 Lakh Crore Investment in Energy Storage by FY32: CareEdge Report
- •India's shift to renewable power necessitates over Rs 4 lakh crore investment in energy storage by FY32, according to CareEdge Ratings.
- •The country's energy storage requirement is projected to reach 411 GWh by FY32, a significant increase from 54 GWh in June 2026.
- •Standalone storage-based tenders have surged, indicating growing activity in the energy storage segment, with 21 GW in FY26 from 7 GW in FY25.
- •Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSPs) are crucial for integrating renewable generation and ensuring grid stability.
- •Coal-based thermal power remains important for meeting demand and providing flexibility alongside renewable expansion, with significant investment also expected in the transmission sector (Rs 5.19 lakh crore by FY31).
Key Questions Answered
According to CareEdge Ratings, India is estimated to require over Rs 4 lakh crore in storage-related investments by FY32 to successfully integrate its growing renewable power capacity.
CareEdge Ratings estimates that India's energy storage requirement will reach approximately 411 GWh by FY32, needing over Rs 4 lakh crore in capex. Additionally, the transmission sector is projected to require a capex outlay of around Rs 5.19 lakh crore between FY27 and FY31.
Standalone storage-based tenders have experienced a sharp increase, rising to around 21 GW in FY26 compared to 7 GW in FY25, which demonstrates growing activity within the energy storage segment.
