Renewable energy is a key pillar of India’s drive toward its Net Zero goals by 2070. With a variety of technical solutions available, India’s stationary energy storage market is projected to attract an investment potential of ₹3.5 trillion between 2023 and 2032. The development and deployment of stationary storage will play a key role in stabilising the grid and supporting large-scale renewable energy integration across India.
New stationary storage market research by ITES
To help innovative UK SMEs gain a competitive foothold into this market, ITES commissioned research to examine the status quo, investigate relevant policies, examine the opportunities, and identify strategies for SMEs.
This information, including expert analysis and exclusive insights is only available to ITES SME programme participants, partners and funders.
Several of the ITES SMEs benefited from two virtual workshops, helping them to better understand the Indian stationary storage market, making it easier for them to enter the market and scale up. Key takeaways from these workshops include commercially important insights on:
- Evaluation of the global potential
- Policy and regulation support
- Investment opportunities
- Opportunities and challenges
- Effective collaborations
Why this stationary storage market research report is so valuable
India has recognised that dispatchable renewable energy (RE) power is critical in contributing to the country’s energy transition and Net Zero targets. This is only possible through the development and adoption of efficient and effective RE storage and distribution solutions.
The government has set the goal of 50GWh capacity by 2029, to be supported under a PLI (Performance Linked Incentive) scheme. To achieve this, India will require significant battery energy storage system (BESS) solutions, which must be mainly domestically sourced. The Central Electricity Authority of India estimates BESS to be the fastest growing part of India’s power sector, hence the investment potential of ₹3.5 trillion during 2023-2032.
Equally, the PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage aims to increase India’s manufacturing capacity of ACC batteries by establishing Giga-scale battery production facilities. These would:
- Boost domestic value addition in battery production
- Reduce dependence on battery imports.
- Growth of both domestic energy storage and electric mobility sectors.
- Enable affordable electric vehicles to be locally manufactured
In addition, grid stability services add even more potential for UK SMEs to take their management solutions and technology to India.
A wealth of commercial opportunities
The in-depth ITES market research is key to SMEs understanding the challenges and opportunities in stationary storage and equips them with the knowledge to enhance their business strategies for the sector.
- Grid stability: With intermittent renewable energy sources, energy storage is essential for balancing energy supply and demand in India. The market research enables SMEs to find out how to become key players in enhancing grid stability, reducing energy costs, and meeting India’s growing energy demands.
- Policy incentives: Understanding the interaction of various policies can be complex for UK SMEs. By reading about the evolving regulatory landscape in the market research, SMEs can align their business models with national targets. Policies like the Energy Storage Obligation (ESO), a mandate to increase energy storage to 4% by 2030, creates exciting opportunities for SMEs to develop and scale their solutions.
- Technology insights: The integration of advanced chemistry cells (ACC) and emerging storage system technologies, such as pump storage projects (PSP), creates a vibrant market for innovation. The market research offers SMEs valuable insights on how next-generation battery technologies and recycling solutions can support India’s circular economy goals.
- Battery recycling: As the demand for battery waste management solutions increases, SMEs specialising in recycling, refurbishing, or second-life applications can leverage this market research to uncover opportunities in this and other growing markets.
- Regional and research insights: The research provides SMEs with insights into regional opportunities where demand for storage solutions is expected to be highest. Equally, the report details ongoing research and development of battery technology taking place in India, allowing SMEs to see how their services and innovations align.
Opportunities and challenges at every turn
The research highlights key opportunities and potential barriers for SMEs looking to enter the market in:
- BESS value and supply chains
- BESS applications
- Critical Battery Mineral Supply Chain
- BESS in the Green-Day Ahead Market
- BTM (Behind the Meter) Segment
- Battery Recycling
It also reveals how regulatory construct, lack of commercial frameworks, and supply chain barriers are slowing down the uptake of battery storage.
ITES market research
ITES commissioned six separate pieces of market research in India to provide SMEs with the knowledge to enhance their business strategies for the Indian market. Click to discover our other reports on:
- Charge point operators (coming soon)
- EV fleet operators (coming soon)
- Green hydrogen (link)
- Smart cities (coming soon)
- The EV market (coming soon)
Our market research reports are free to relevant SMEs. If you’re an innovator and would like to access the full report, or find out more, please contact us at info@ites.org.
