India's battery storage capacity gathers pace as power demand stays robust: HSBC

New Delhi [India], June 30 (ANI): India is rapidly increasing its battery energy storage capacity, helping the power system meet higher electricity demand in the evenings, especially during heatwaves, according to a report by HSBC Global Investment Research.
The report said operational Battery Energy Storage System (BESS) capacity in India has reached 2.7 GW/7.5 GWh, with significant additions during May, as developers increasingly invest in storage projects to support renewable energy integration.
"Energy storage systems are increasingly contributing to cater to the evening peak demand, with BESS and PSP contributing as much as c4.5GW at the time of evening peak of c240GW at 22:45 on 2 June," the report said.
HSBC noted that India's storage pipeline remains robust, with around 42 GWh of projects under construction and another 40 GWh already awarded. It expects substantial capacity additions over the next three years as the country strengthens grid reliability while expanding renewable energy capacity.
Power demand has also remained elevated during the summer months. According to the report, "Even in the first 20 days of June, power demand was up 8.5%, with peak demand reaching up to c260GW in June after recording its highest-ever level of 271GW in May."
The report attributed the higher electricity demand to delayed monsoon rains and persistent heatwaves, which pushed up cooling requirements across several states. It added that average power prices on the Indian Energy Exchange (IEX) also increased during May as demand strengthened.
On the renewable energy front, HSBC said solar capacity additions moderated after two months of strong growth, although renewable capacity continues to expand steadily. It also highlighted the implementation of the Approved List of Models and Manufacturers (ALMM) norms for solar cells from June 1.
"As the domestic cell requirement clause kicks in from 1 June 2026, we expect some short-term pressure on module supply and capacity commissioning while manufacturers add capacity," the report said.
The report added that while tighter domestic cell availability could temporarily affect module supplies and project commissioning, India's long-term renewable energy and storage outlook remains positive as capacity expansion continues across the sector. (ANI)

(This article was generated from news agency ANI without modifications to the text.)