January 9, 2026: India is set to see a near 10-fold increase in battery storage capacity this year, according to new analysis from the India Energy Storage Alliance (IESA).

IESA said on January 6, BESS capacity nationwide is expected to rise to 5 GWh in 2026 from 507 MWh in 2025, mainly due to a huge backlog of projects finally coming online.

The report reveals that 2026 marks a critical inflection point as the industry transitions from tendering to execution.

According to the report, while 2025 was defined by unprecedented tendering activity — 69 tenders totalling 102GWh, nearly equal to all tenders issued between 2018 and 2024 combined — 2026 will be the year the industry proves itself operationally, as the wave of tenders awarded since mid-2023 finally materialise into commissioned assets.

Typical BESS project timelines in India are around 18-24 months, the report said.

IESA president Debmalya Sen said: “All eyes will remain on whether the performance of these projects is in line with what was committed.”

Batteries International reported in December that regulators in India had issued draft rules that would allow utilities to recover investment and running costs for battery storage projects.

The Central Electricity Regulatory Commission said on December 1 the move would mean regulated utilities could claw back investment and certain operating costs for battery storage alongside power generation and transmission facilities.

The move aims to establish a tariff mechanism, defining how BESS projects are evaluated, run and how compensation is awarded.