Battery energy storage plants on the grid - charged with cheap solar by day, discharged in the evening peak - built under VGF-backed and storage-linked tenders.
Developers win 2- to 4-hour storage tenders from SECI, NTPC, NHPC or state discoms, buy containerised battery systems (cells, packs, power conversion and controls), connect them at a substation and earn a fixed monthly capacity charge for 12-25 years, or bundle storage into firm and peak-power renewable contracts.
Storage has become the biggest new cell buyer. The Ministry of Power's second VGF tranche (Jun 2025) gives ₹5,400 Cr (₹18 lakh/MWh) for 30 GWh across 15 states and NTPC, on top of 13.2 GWh in the first tranche. CEA's National Electricity Plan sees ~236 GWh of battery storage needed by FY32. The last 10 GWh of PLI-ACC was re-tendered in Jul 2026 for grid-storage cells only.
Contracted, annuity-like returns for developers once commissioned; storage tariffs have fallen steeply since 2022 as Chinese cell prices collapsed. Nearly all BESS cells are imported today, so local cell plants (Reliance, Waaree, Amara Raja) are chasing this pool first.