New Delhi: Scaling up long-duration energy storage (LDES) will be critical for India to achieve its target of 500 GW of non-fossil fuel energy capacity by 2030, the India Energy Storage Alliance (IESA) said in a press release shared with BioEnergy Times. The report was prepared in association with Customized Energy Solutions (CES).
The report, titled Long-Duration Energy Storage: Global Outlook and India’s Deployment Pathway, identifies the proposed viability gap funding (VGF) framework for fiscal 2027-28 as a key mechanism to accelerate investment in and deployment of long-duration storage technologies.
Highlighting the challenges of integrating renewable energy into the grid, the report said India curtailed 2.3 terawatt-hours (TWh) of solar power over eight months in 2025 due to grid and storage constraints. It said greater storage capacity would help absorb surplus renewable electricity and make it available during periods of high demand or lower generation.
Globally, the Long Duration Energy Storage Council estimates that around 8 terawatts (TW), equivalent to 140 TWh, of LDES capacity will be required by 2040. In comparison, only 117 GW was operational in 2025. Meeting the projected requirement would require nearly $4 trillion in investment and could generate annual system-wide savings of around $540 billion.
In India, the Central Electricity Authority (CEA) has projected a requirement of 34.5 GWh of battery energy storage systems (BESS) by FY2027. While 9.3 GWh has been commissioned, another 195 GWh of projects have been awarded or are under tender. However, the existing project pipeline is largely focused on short-duration storage solutions.
The report identifies several technologies that could address different storage requirements. Flow batteries are suited to daily storage cycles of eight to 12 hours, while iron-air batteries can provide multi-day storage. Pumped hydro, compressed air and thermal energy storage could also cater to large-scale and industrial applications.
IESA said India currently lacks a formal statutory definition of long-duration energy storage and a dedicated funding mechanism for projects offering eight hours or more of storage.
Debmalya Sen, president of IESA, said long-duration storage would help improve renewable energy utilisation, grid stability and power system resilience. He called for supportive policies, innovative commercial models and technology-neutral investment to accelerate deployment.
The report recommended collaboration among policymakers, regulators, industry participants and investors to develop suitable policy and financing frameworks to expand long-duration energy storage capacity.
