India is on track to become a major player in the energy storage game, with projections indicating it will be the world’s third-largest market for utility-scale batteries by 2030. This rapid growth is fueled by declining battery costs and a growing need for renewable energy integration. 

A report by the International Energy Agency (IEA) predicts significant capacity additions in India’s battery storage market, reaching nearly 9 GW by 2030. This surge is attributed to several factors, including: 

• Cost Competitiveness: Solar power combined with battery storage is already proving more cost-effective than traditional coal generation in India. This trend is expected to solidify as battery prices continue to fall. 
• Rising Solar Reliance: India’s aggressive solar energy goals will necessitate increased short-term flexibility in its power grid. Battery storage offers a perfect solution, allowing for energy capture during peak solar hours and discharge during peak evening demand. 
• Government Mandates: The Indian government is actively promoting energy storage by mandating wind and solar projects to incorporate at least 5% of their capacity with battery storage. 

This focus on energy storage positions India to potentially transform its power grid by 2050. The IEA report suggests that solar and battery storage could become the backbone of the nation’s electricity infrastructure, with batteries charging during peak sunlight hours and discharging to meet evening peak demand. 

Globally, the upfront costs of utility-scale battery storage are expected to decrease by 40% by 2030, reaching $175/kWh from a 2022 average of $290/kWh. Notably, India is a significant contributor to this cost reduction trend due to its robust growth in the battery storage market. Advancements in battery technology and manufacturing have also played a crucial role, driving average battery costs down from a staggering $1400/kWh in 2010 to under $140/kWh in 2023. 

Currently, China reigns supreme as the global leader in battery storage, with its annual market share skyrocketing from 20% in 2019 to a dominant 55% in 2023. The United States follows closely behind, boasting over 8 GW in annual additions and holding the title of the second-largest market. Europe is also making significant strides, with its installed battery storage capacity growing by 70% in 2023 and reaching nearly 6 GW in annual additions. 

India’s projected rise in the battery storage market signifies a promising shift towards renewable energy integration and a more sustainable future. With declining costs and government support, India is poised to become a major force in the global energy storage landscape.