The Battery Storage Market in India

India's battery market is experiencing significant growth, with the market estimated to be at USD 16.77 billion by the end of this year. It is projected to reach USD 27.70 billion in the next five years, registering a CAGR of over 10.56% during the forecast period. This growth is driven by factors such as the emergence of new markets like electric vehicles and battery energy storage systems for various applications.

 Battery Energy Storage Systems in India

The battery energy storage system (BESS) market in India is also witnessing substantial growth. It is estimated to be at USD 3.10 billion by the end of this year and is projected to reach USD 5.27 billion in the next five years, registering a CAGR of over 11.20% during the forecast period. Factors such as declining prices of lithium-ion batteries and government initiatives to promote energy storage deployment are driving this growth.

Role of Lithium-ion Batteries

Lithium-ion batteries are witnessing high demand in renewable power projects. Many industry experts believe that the growth of renewables in India is incomplete without energy storage systems, and lithium batteries offer the most cost-effective integration.

India's installed solar energy capacity stood at around 61.97 GW as of 30th November 2022. The government has planned many projects to reach its ambitious target of increasing its share to 100 GW by 2022. However, due to the intermittency of solar power supply, many private players have planned solar plus energy storage projects to ensure a continuous power supply to the grid.

Future Prospects

Despite the current absence of domestic lithium-ion manufacturing facilities, plans for local manufacturing of lithium-ion batteries in India are likely to create lucrative growth opportunities for the Indian battery market during the forecast period.

In conclusion, the battery storage market in India is on a growth trajectory, driven by the increasing demand for renewable energy, government initiatives, and technological advancements. As India continues to strive towards its renewable energy goals, the battery storage market is poised to play a crucial role in this journey.