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February 2025 Update: India's Energy Storage Market Developments

February witnessed significant momentum in India's energy storage sector, with 100 tenders totaling 137 GWh in the pipeline, including 45 GWh of BESS capacity. Key highlights from the month include:

Policy & Regulatory Updates

• Cabinet Approval: National Critical Minerals Mission approved, enhancing India's self-reliance in raw materials for energy storage and EVs.
• Union Budget 2025: Expanded the list of exempted capital goods for battery manufacturing, adding 35 new capital goods for EV and battery production.
• Ministry of Power (MoP): Issued tariff-based competitive bidding guidelines for Pumped Storage Projects (PSP).
• CEA Advisory: Mandates a minimum 2-hour storage equivalent to 10% of installed solar capacity in all future tenders.
• Battery Waste Management Rules: Amendments announced by MoEFCC to improve recycling and circular economy measures.

Project Announcements & Industry Collaborations

• NTPC: Awarded a Long-Duration Energy Storage (LDES) project to Triveni Turbines, featuring Energy Dome's innovative CO2 battery technology at NTPC Kudgi.
• TATA Power & ONGC: Signed a Memorandum of Understanding (MoU) to explore joint Battery Energy Storage System opportunities.
• MHI: Signed a Production Linked Incentive (PLI) agreement with Reliance New Energy Battery for 10 GWh Advanced Chemistry Cell (ACC) manufacturing, achieving a total of 40 GWh under the PLI scheme.

Tenders & Market Developments

• JSW: Won SECI's Kerala standalone BESS tender (125 MW/500 MWh) at INR 4.41 lakh/MW/month.
• ReNew, EG Energy Dev., Serentica, and TPREL: Secured 448 MW in SJVN's 1200 MW RTC tender, with tariffs of INR 4.82-4.91/kWh.
• CERC: Approved NTPC's first Firm Dispatchable Renewable Energy (FDRE) project (1830 MW) at INR 4.63-4.72/kWh.
• Standalone BESS Tenders: 7 tenders (7 GWh total) announced under the VGF scheme across Andhra Pradesh (NHPC), Tamil Nadu, Uttar Pradesh (SJVN), Rajasthan (NVVN), Karnataka, and Bihar.

The energy storage sector is accelerating, backed by strong policies, new technology integration, and aggressive tendering, positioning India as a key player in grid-scale storage and BESS expansion.