Articles

BESS in India: Key Use Cases Across the Energy Ecosystem

India’s rapid addition of renewable energy capacity is increasing the need for electricity storage that can bridge the gap between when power is generated and when it is consumed.  The government has set an ambitious target of achieving 500 GW of non-fossil fuel-based installed power capacity by 2030, with solar and wind expected to account for a significant share of this capacity.

While renewable energy is crucial for cleaner power, its variable output makes grid balancing more challenging. Solar generation stops after sunset, while wind power depends on weather conditions. Battery Energy Storage Systems (BESS) allow electricity generated at one time to be used later. This is particularly relevant as India’s electricity demand increasingly overlaps with periods when solar generation is falling. BESS is therefore being considered across a wide range of applications—from residential backup and industrial peak management to EV charging, critical infrastructure and large renewable-energy projects. 

 What is a Battery Energy Storage System (BESS)?

A Battery Energy Storage System (BESS) acts as an energy buffer—storing electricity in rechargeable cells (typically lithium-ion) and discharging it during peak demand or generation deficits. It operates through integrated subsystems: 

battery modules for storage, 

a Battery Management System (BMS) to monitor cell health, 

a Power Conversion System (PCS) to handle bidirectional AC/DC power flow with the grid,

an Energy Management System (EMS) to optimize dispatch schedules, and 

dedicated thermal and fire protection units to ensure operational safety and stability.

The size of a BESS varies widely depending on its intended application. Small residential systems may offer only a few kilowatt-hours (kWh) of storage, providing backup power and supporting rooftop solar installations. At the other end of the spectrum, utility-scale battery storage projects can have capacities of several hundred megawatt-hours (MWh), allowing stored electricity to be shifted to periods of higher demand and supporting grid operations. 

Why India Needs Battery Energy Storage

India requires Battery Energy Storage Systems (BESS) to address its acute “duck curve”—the structural mismatch between peak midday solar generation and peak evening demand. This creates a need to shift part of the available renewable power to evening and peak-demand periods. BESS can also provide grid-support functions such as frequency regulation, voltage support and reserve capacity. For commercial and industrial consumers, batteries can additionally be used to manage short-duration demand peaks and reduce dependence on diesel-based backup generation.

Recognising its strategic importance, the Government of India has introduced Viability Gap Funding (VGF) for standalone BESS projects and has begun awarding several large-scale storage tenders through agencies such as SECI and NTPC.

India’s Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS) covers up to 40% of capital costs, featuring a ₹3,760 crore outlay for 13,220 MWh (at ₹27 lakh/MWh) and an expanded ₹5,400 crore Power System Development Fund (PSDF)  scheme for 30 GWh (at ₹18 lakh/MWh).

Top Use Cases of BESS in India

1. Residential Rooftop Solar with Battery Backup

Standard grid-tied rooftop solar shuts down automatically during grid outages to protect line workers from anti-islanding* hazards, leaving homes unpowered even in peak sunlight. Adding a battery allows surplus solar generation to be stored locally and used when the grid is unavailable or when solar generation falls.

This setup can increase self-consumption of rooftop solar, provide backup for essential household loads and reduce grid consumption during higher-tariff periods under Time-of-Day (ToD) tariffs.

* Note: A normal rooftop solar system that is connected to the electricity grid automatically stops supplying power when the grid goes down. This is a safety feature called anti-islanding.

Practical Example

  • In August 2026, Tata Power announced integrated rooftop solar + battery storage solutions for homes, with battery storage starting from 5 kWh. Its FY2025-26 annual report also states that it had developed rooftop solar kits from 1–10 kW, including its MySine BESS solutions.
  • Tata Power Solaroof has crossed 5 lakh rooftop solar installations in India, completing 5,19,673 installations as of July 31, 2026, with a reported 14% market share. The company has also facilitated over ₹8,500 crore in solar financing through 25+ financing partners to support residential and C&I customers. Through its ‘Ghar Ghar Solar’ initiative, Tata Power is expanding rooftop solar adoption across 11 states and one Union Territory. It is also offering battery energy storage solutions, including residential systems of 5–40 kWh and C&I systems from 60 kWh to 5 MWh, to enable greater use of solar power beyond daylight hours.

2. Commercial Buildings and Industrial Facilities

Commercial and industrial businesses use about half of India’s electricity, paying top rates and heavy penalties whenever their power use suddenly spikes. For these consumers, one of the main applications of BESS is peak-demand management. The battery can discharge during periods of high electricity use, reducing the amount of power drawn from the grid at those times.

BESS can also work alongside rooftop solar, provide short-duration backup and reduce the operating hours of diesel generators where battery capacity is sufficient for the required load.

Practical Example

  • Auto-parts manufacturer – Pune

Voltrack reports that an automotive component manufacturer in Pune deployed a 500 kWh BESS for peak shaving. The system monitors plant demand and discharges during periods of high load from heavy stamping equipment, helping reduce peak demand by 27%.

  • Textile facility – Surat, Gujarat

Rolling Energy reports a 1 MW/2 MWh LFP BESS deployed at a textile facility in Surat. The battery supplies additional power when multiple machines start simultaneously, reducing peak electricity demand by around 850 kVA and potentially lowering demand-related electricity charges.

  • Steel rolling mill – Pune

TESAS highlights a steel rolling mill that installed a 1 MW/2 MWh BESS to manage short-duration demand peaks created by energy-intensive equipment, including an arc furnace and rolling-mill motors. The battery is used to limit the plant’s maximum grid demand during these high-load periods. 

SilicIndia explains how BESS can be used by industrial consumers to reduce peak grid demand. The battery charges during lower-demand periods and discharges when facility demand approaches the contracted limit, helping consumers avoid higher demand charges or an increase in contracted capacity.

During demand spikes, the BESS supplies part of the facility’s electricity requirement, keeping the grid drawn within the desired limit. This approach is being evaluated across sectors such as textiles, pharmaceuticals, automotive, electronics and food processing.

3. Data Centres

India’s data centres are expanding rapidly due to cloud computing, AI workloads, digital banking and e-commerce, but they cannot afford even a second of downtime.These facilities therefore require backup systems that can respond immediately to a power interruption and maintain continuity until the primary supply is restored or another backup source takes over.

BESS can provide this fast response while also supporting power-quality management and reducing diesel-generator runtime in applications where battery capacity and system design permit.

Practical Example

  • Tata Power – Mumbai DER Project

Tata Power’s Mumbai Distributed Energy Resource (DER) project includes a planned 100 MW/200 MWh BESS to provide backup during grid failures and support critical loads such as data centres. The project is also intended to provide voltage and frequency support within the distribution network. 

  • GRI Institute – Mumbai Data Centres

The report highlights the growing power requirements of India’s data-centre sector and the importance of reliable backup infrastructure, including UPS systems, BESS and diesel generators, as Mumbai’s data-centre capacity expands.

  • Tata Power – 100 MW BESS in Mumbai

Tata Power announced plans to deploy a 100 MW BESS across 10 Mumbai locations to support critical infrastructure, including data centres, during grid disturbances. The system is designed with black-start, islanding and high ramp-rate capabilities to improve grid resilience.

4. Electric Vehicle Charging Stations

India’s EV charging network is expanding rapidly for passenger vehicles, buses and commercial fleets. However, fast chargers can demand hundreds of kilowatts from the local grid. BESS can supplement available grid capacity during high charging loads, allowing charging operators to manage peak demand without immediately requiring a corresponding increase in grid connection capacity. 

Applications

  • Fast charging support
  • Solar-powered charging stations
  • Peak demand reduction
  • Improved charger utilisation
  • Reduced infrastructure upgrades

Practical examples

  • ChargeZone – Solar + BESS Highway Charging

ChargeZone has deployed an ultra-fast charging hub at Shri Annapurna Hotel on the Bengaluru–Chennai Highway, featuring five 240 kW chargers, 55 kW rooftop solar and a 1.2 MW BESS. The battery is intended to support charging operations during power outages. 

  • ChargeZone – Project E-DHARA

ChargeZone’s Project E-DHARA plans to integrate solar generation, BESS and high-speed charging at EV charging hubs. The first planned hub at Dahej, Gujarat, includes a 1 MW solar plant and 5 MWh BESS, with the facility designed to operate largely off-grid.

  • Quench Chargers – BESS-Assisted Fast Charging

Quench Chargers has introduced a BESS-assisted energy management system combining grid power, renewable energy, battery storage and DC fast charging. The system can support charging loads of up to 480 kW where grid capacity is limited by drawing additional power from the battery during high-demand periods. 

5. Hospitals and Healthcare Facilities

Hospitals require uninterrupted electricity for:

  • Intensive Care Units (ICUs)
  • Ventilators
  • MRI and CT scanners
  • Operation theatres
  • Blood banks
  • Vaccine refrigeration

Diesel generators remain an important backup source, while BESS can provide an immediate power response and support selected critical loads before or alongside generator operation. 

Practical Example

  • Nova Hospital, Bulandshahr – BESS Installation

OGO Energy installed and commissioned a 15 kW / 35.84 kWh BESS at Nova Hospital, Bulandshahr. The system was designed for a microgrid application and to provide a more reliable electricity supply to the healthcare facility. 

  • Tier-2 Multi-Specialty Hospital – 125 kW / 257 kWh BESS

PWRNXT reports a 125 kW / 257 kWh BESS deployment at an 80–100-bed multi-specialty hospital in North India. The system supports critical loads including the ICU, operating theatres, CT imaging and pathology, while the existing diesel generator remains available for longer outages. 

  • Mid-size Hospital – Solar + BESS (Case Study)

An ICLEI South Asia study models a mid-size hospital with a 1,034 kW peak load and 17,140 kWh daily energy requirement, combining a 200 kW rooftop solar PV system with BESS. The study examines the use of BESS for reducing diesel-generator use, managing peak demand and maintaining electricity availability during grid interruptions. 

6. Solar Microgrids for Remote Communities

Many remote villages, islands, border areas and mining locations still face unreliable grid connectivity. In such locations, a battery-backed microgrid can combine locally generated electricity with storage and supply power when renewable generation is unavailable.

Practical Example

  • Turtuk, Ladakh – Solar + Wind + Battery + Diesel

A study of Turtuk village in Ladakh evaluated an off-grid hybrid system combining 115 kW solar PV, 1 kW wind, battery storage and a 50 kW diesel generator. The proposed configuration was designed to meet the village’s electricity demand while reducing diesel dependence; the study estimated a 95.97% reduction in CO₂ emissions compared with diesel-only generation.

  • Ladakh – Decentralised Solar + Battery Systems

Ladakh Renewable Energy Development Agency (LREDA) has deployed off-grid solar power plants with battery banks in remote locations including Lukung and Spangmik, where grid connectivity was unavailable. In 2021, LREDA replaced battery banks at these solar plants to maintain power availability.

  • Paska Bazar, Uttar Pradesh – Renewable Microgrid

Tata Power has developed a renewable microgrid demonstration project at Paska Bazar in Gonda, Uttar Pradesh, aimed at improving energy independence for a rural community facing power fluctuations and dependence on diesel generators. The project combines solar power with biogas-based generation to provide a local electricity supply.

7. BESS in Utility-Scale Renewable Energy Projects 

At utility scale, BESS is increasingly paired with solar and wind projects to store excess renewable energy and discharge it when generation is lower or demand is higher. It can also firm power output, improve supply predictability, and reduce renewable energy curtailment.

Practical Example

  • SECI – Rajnandgaon, Chhattisgarh

SECI commissioned a 100 MW solar PV plant with a 40 MW/120 MWh BESS at Rajnandgaon, Chhattisgarh. The battery stores solar electricity and allows it to be supplied during non-solar peak hours, supporting peak-demand management and grid operations. 

  • NTPC – Solar + BESS at Shimbhoo Ka Burj

NTPC Renewable Energy has initiated an EPC project for a 550 MW/2,200 MWh BESS at its Shimbhoo Ka Burj solar plant in Rajasthan. The four-hour storage system is intended to store renewable electricity and make it available when required. 

  • NTPC REL – 500 MW Solar + 250 MW/1,000 MWh ESS

NTPC Renewable Energy won a 500 MW solar power capacity in a SECI auction that requires it to establish a 250 MW/1,000 MWh energy storage system alongside the contracted solar capacity. The storage is part of a larger 2,000 MW solar + 1,000 MW/4,000 MWh ESS tender.

  • GSECL – Gujarat Solar + Storage Hybrid

GSECL’s Kutch Lignite Thermal Power Station (KLTPS) project combines 35 MW solar PV with a 57 MWh BESS, demonstrating the use of battery storage alongside utility-scale solar generation.

8. Railways and Metro Systems

Battery storage also supports energy-efficient transportation infrastructure. Applications include:

  • Regenerative braking energy storage
  • Station backup power
  • Peak demand management
  • Renewable integration

Practical Example

  • Kolkata Metro – 4 MW/6.4 MWh BESS

Kolkata Metro commissioned a 4 MW/6.4 MWh BESS at the Central Substation of the Blue Line in February 2026. The system can provide traction power during grid failures, helping trains stranded in underground sections reach the nearest station. It can also supply tunnel ventilation and other essential systems during outages. 

  • Jaipur Metro – Wayside BESS for Regenerative Braking

A 1.5 MWh wayside BESS has been reported for Jaipur Metro to capture and reuse regenerative braking energy that would otherwise be dissipated as heat. The system has a 2 MW peak power rating and is reported to reduce traction energy costs by 22%.

  • Indian Railways – Solar + BESS for Peak Power Management

Indian Railways’ renewable-energy arm REMC Ltd is pursuing standalone BESS projects for peak power management using solar power. Proposed systems include 200 MW/800 MWh and 250 MW/1,000 MWh BESS, charged during solar hours and discharged for four hours during peak periods, including 18:00–24:00.

9. Water Treatment plants

BESS can support water and wastewater treatment facilities by providing backup power, improving the utilisation of onsite renewable energy and helping maintain critical pumping and treatment operations during grid interruptions. 

Practical example

10. Airports 

BESS can help airports use more of their onsite renewable generation beyond the hours of solar production and provide an additional source of backup power for selected loads. 

  • Bangalore International Airport Limited’s Terminal 2 Phase 2 EPC requirements specify a 1.5 MW / 1-hour BESS integrated with the proposed rooftop solar plant. The rooftop solar system and BESS are listed as optional items under the main EPC contract, with BIAL retaining the option to execute them separately through a specialised contractor.

11. Green hydrogen projects

BESS can be used alongside renewable-powered electrolysers to store electricity when renewable generation exceeds the immediate requirement and supply it when generation falls. This can help maintain a more consistent power supply to the electrolyser, depending on the system configuration.

  • NTPC’s Simhadri Green Hydrogen Microgrid in Andhra Pradesh uses solar power to produce and store green hydrogen during the day, which is then converted back to electricity through a fuel cell when required. (This is not a conventional BESS installation, but it demonstrates a separate approach to storing renewable energy for later use.)

12. Large Educational & Research Campuses

BESS can help large campuses shift renewable electricity to periods of higher demand, manage peak consumption and maintain supply to selected loads during grid interruptions. 

  • TERI School of Advanced Studies (TERI SAS), Delhi: TERI, in association with BRPL, installed a 72 kWh BESS at the TERI SAS campus. The system is used for energy arbitrage, better utilisation of solar generation and reducing emissions. 
  • IIT Madras Research Park: IIT Madras has planned a 1–20 MWh Li-ion BESS as part of its renewable-energy transition, to store excess solar/wind power and reduce reliance on diesel generators. (This is a planned system rather than evidence of an already commissioned campus BESS)

13. Telecom Towers

Telecom towers in areas with unreliable grid supply have traditionally relied on diesel generators, often alongside batteries, to maintain operations during outages. Battery energy storage can provide backup power during grid interruptions and, when integrated into hybrid power systems, reduce diesel-generator operating hours and fuel consumption.

India has more than 700,000 telecom towers, many of which operate in regions with unreliable electricity supply.

Practical Example

  • NEC – Solar PV + Lithium-ion Batteries for Indian Telecom Towers

NEC completed a demonstration project in India using solar PV, lithium-ion batteries and an energy management system at telecom tower sites with unstable power supplies. The project aimed to reduce diesel-generator fuel consumption and confirmed reductions in diesel use, energy costs and CO₂ emissions.

  • American Tower – Solar + Battery at Rural Indian BTS Sites

A case study covering 10 BTS sites in rural India describes the deployment of solar systems with battery banks at remote telecom sites where grid access was unavailable or unreliable. The sites had previously relied on diesel generators. The solar-and-battery systems were used to supply telecom equipment at these locations. 

  • BeSafe – Solar + Lithium Battery + Diesel Hybrid Telecom Tower (Case study)

BeSafe reports a remote telecom tower installation combining 80 kWp of solar PV with 120 kWh of lithium battery storage and an existing 30 kVA diesel generator. The battery stores surplus solar generation and supplies the site when solar output falls, while the diesel generator provides backup when battery charge is low. According to the company’s case study, the hybrid system reduced diesel-generator runtime by 71% during its first 12 months of operation. 

14. Standalone Grid-Scale Battery Energy Storage

Large battery storage facilities connected to the electricity grid, which may operate as standalone systems rather than being tied to a specific solar or wind project. Key applications include peak shifting and peak demand management, grid balancing, frequency and voltage regulation, ancillary services, congestion management, and transmission and distribution support.

Grid Services Utility-scale BESS can provide:

  • Peak demand support
  • Frequency regulation
  • Voltage support
  • Spinning reserve
  • Black start capability
  • Transmission congestion relief
  • Renewable energy firming

Practical Example

  • Charal Substation, Gujarat – 180 MW/360 MWh Standalone BESS

A 180 MW/360 MWh standalone BESS is being developed at the 400 kV Charal Substation in Gujarat. Unlike storage directly coupled to a solar or wind plant, this project is being developed within the transmission network and can be used to provide grid-level storage services.

  • MSEDCL – 300 MW/600 MWh Standalone BESS

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has initiated 300 MW/600 MWh of standalone BESS projects in Maharashtra through tariff-based competitive bidding. These projects are intended to add storage capacity that can be dispatched according to system requirements. 

  • Modhera, Gujarat – Solar + 6 MW/19.2 MWh BESS

The Modhera Solar Park includes a 6 MW solar PV plant integrated with a 6 MW/19.2 MWh BESS at Sujanpura, Gujarat. The project demonstrates the integration of battery storage with solar generation at the local power-system level. 

Emerging Applications

The use of BESS is also being explored in sectors where electricity demand is variable or where maintaining supply during grid interruptions is particularly important. These include: 

  • Smart cities
  • Defence establishments
  • Agricultural feeders (The application is emerging in India alongside the expansion of solarised agricultural feeders under schemes such as PM-KUSUM.)
  • Industrial parks
  • IT parks
  • Ports

The scale and commercial viability of these applications will depend on factors such as battery costs, electricity tariffs, grid requirements, project financing and the value assigned to different storage services. 

Conclusion

BESS is being deployed across increasingly diverse parts of India’s electricity ecosystem. The use cases range from storing rooftop solar in homes and managing industrial demand to supporting EV charging, critical infrastructure, renewable-energy projects and grid operations.

The examples above also show that BESS does not serve a single purpose. Depending on the project, the same technology can be used for backup, peak-demand management, renewable-energy shifting, power-quality support or grid services.

As more projects move from proposals and tenders to operational installations, the performance and economics of these systems will provide a clearer indication of which applications can scale commercially in India.

Source Links

Also read: BESS Safety Basics: Key Considerations for India

Subscribe to our Newsletter

Subscribe today for free and stay on top of latest developments in Cleantech domain.

You May Also Like

Beyond Averages: Getting Battery Sizing Right

Offline UPS vs. Online UPS: Understanding Switchover Time, Backup Duration, and Applications

BESS Safety Basics: Key Considerations for India