Grid-scale energy storage is essential for enabling clean and resilient energy systems. As renewable energy sources such as wind and solar continue to expand, the need for reliable storage solutions grows. These systems help balance power supply fluctuations, ensuring stability and reducing the risk of outages. The ability to store surplus energy during high-generation periods and release it when demand peaks is crucial for maintaining a well-functioning power grid.

India’s commitment to decarbonisation, increased penetration of distributed energy resources, and the drive to reduce dependency on fossil fuels are accelerating the need for energy storage solutions. Policy support, falling battery costs, and advancements in storage technology are making large-scale adoption feasible. The integration of energy storage will not only stabilise the grid but also enable deeper renewable energy penetration, helping India achieve its sustainability goals.

Key Drivers for Energy Storage in India
India’s energy landscape is evolving rapidly. The country has set an ambitious target of achieving 500 gigawatts of non-fossil fuel capacity by 2030. With this transition comes the challenge of managing supply and demand mismatches, particularly during peak energy consumption periods. Energy storage solutions play a critical role in addressing this challenge by capturing surplus solar energy during the day and making it available during the evening when demand surges.

The push for a cleaner energy mix has further intensified with India’s commitment to reducing its carbon footprint under the Paris Agreement. Large-scale energy storage presents a viable alternative to coal-fired peaking plants, ensuring a greener and more sustainable energy supply. The government is actively supporting storage technology through initiatives such as the National Energy Storage Mission and production-linked incentives for battery manufacturing. These policies are making storage solutions more affordable and accessible for widespread deployment.

Several states, including Andhra Pradesh, Gujarat, and Tamil Nadu, are already adopting large-scale battery storage systems to support renewable energy parks. A major step towards building a resilient energy infrastructure is the recent tender released by NTPC REL for the development of a 2500 megawatt, 10,000 megawatt-hour Battery Energy Storage System.

Promising Battery Technologies for Large-Scale Energy Storage
A variety of battery technologies are emerging as viable solutions for grid-scale storage. Each offers unique advantages in terms of cost, efficiency and scalability.

Lithium-ion batteries continue to dominate the market due to their high energy density, fast response time and ongoing cost reductions. Their efficiency ranges between 85 and 95 percent, making them suitable for short-duration, high-power applications. Flow batteries, which use liquid electrolytes, are a promising alternative for long-duration storage as they offer scalability and a long cycle life. However, their current costs remain high.

Sodium-ion batteries are gaining attention as a cost-effective solution that uses abundant resources. With improvements in energy density and efficiency, these batteries have the potential to become a common choice for grid storage. Solid-state batteries are another innovation that provides better safety, a longer lifespan and higher energy density. Although still in development, they are expected to change energy storage in the coming years.

Zinc-based batteries are becoming a reliable option for long-duration applications, especially in off-grid settings. Their efficiency is slightly lower than lithium-ion batteries, but they provide a more affordable alternative. Hydrogen-based storage solutions are also becoming more important, particularly for seasonal energy storage. The industry is exploring hybrid systems that combine batteries with green hydrogen production.

When comparing these technologies in terms of cost, efficiency and scalability, lithium-ion remains the most competitive. Its costs are expected to decrease further. Flow batteries are more expensive but have excellent scalability since their storage capacity depends on the size of the electrolyte tanks, making them highly flexible for long-duration use. Sodium-ion batteries are expected to become more affordable, offering high scalability and good efficiency. Solid-state batteries, which may become commercially viable by 2030, promise high efficiency and long cycle life. Zinc-based batteries, which are likely to have lower costs than some alternatives, are emerging as a practical option for off-grid and long-duration applications, though their efficiency is slightly lower. Hydrogen-based storage systems, although not traditional batteries are playing a bigger role in long-duration and seasonal energy storage.

Choosing the right technology for an application depends on a full lifecycle cost analysis.

The pace of innovation in energy storage is accelerating due to advancements in materials science, manufacturing, and system integration. Sodium-ion and solid-state batteries are expected to achieve commercial viability by 2030, while improvements in flow and zinc-based technologies will enhance their competitiveness for large-scale applications. Battery recycling and second-life applications will also become crucial in ensuring sustainable storage solutions.

Addressing Supply Chain Risks in Battery Production
The volatility of raw material prices, particularly lithium, cobalt, and vanadium, poses a significant challenge to the large-scale expansion of battery production. The industry must adopt a comprehensive strategy to mitigate these risks through material innovation, alternative chemistries, and circular economy principles.

There is a growing emphasis on reducing dependence on scarce and expensive materials. Sodium-ion batteries are proving to be a viable alternative to lithium-ion technology as they use abundant sodium instead of lithium. Recent breakthroughs in energy density and cycle life are bringing them closer to commercial viability, particularly for grid-scale applications where weight constraints are less of a concern.

Lithium iron phosphate batteries, which do not contain cobalt or nickel, are gaining traction due to their lower cost, extended lifespan, and improved safety features. This shift in battery chemistry is helping mitigate supply chain risks and reduce dependence on geologically constrained resources.

In addition to material innovations, battery recycling and second-life applications are becoming increasingly important. Advances in recycling technologies, such as direct cathode regeneration and hydrometallurgical processes, allow valuable materials like lithium, cobalt, and nickel to be recovered from used batteries, reducing the need for new mining operations. Additionally, second-life applications for electric vehicle batteries offer an opportunity to repurpose them for stationary grid storage once their automotive life has ended.

Establishing domestic supply chains is another crucial factor in mitigating supply chain risks. Countries are investing in localised battery material processing and refining to reduce reliance on geopolitically sensitive supply networks. India is actively working towards setting up battery gigafactories and securing local sources of critical minerals to enhance supply security.

Key Elements for Successful Energy Storage Adoption
The large-scale deployment of energy storage solutions depends on a combination of policy support, investment, and technological advancements. There are several critical factors that will drive successful adoption in India.

A robust policy implementation is essential to attract investment in storage projects. Clear regulations, incentives, and market mechanisms will encourage private sector participation and accelerate the deployment of storage solutions. India’s National Energy Storage Mission and production-linked incentives for battery manufacturing are positive steps in this direction.

Advancements in technology and cost reduction will be key to making energy storage solutions economically viable. Continued investment in research and development will drive down costs, improve efficiency, and enhance scalability. Grid modernisation efforts will also play a significant role, as integrating digital technologies and smart grid solutions will ensure seamless adoption of energy storage systems.

India has the potential to become a global leader in energy storage by leveraging its vast renewable energy capacity, strong manufacturing base, and policy-driven approach. By scaling up domestic battery manufacturing, promoting research and development in advanced storage technologies, and enhancing grid integration efforts, India can position itself at the forefront of the global energy transition.

The coming decade will witness significant expansion in grid-scale energy storage, with global deployments expected to surpass one terawatt-hour by 2030. With the right strategies and sustained innovation, India can not only meet its own energy transition goals but also emerge as a hub for advanced energy storage solutions on the global stage.

Tata Consulting Engineers is committed to driving innovation and providing engineering solutions that support the adoption of energy storage technologies. Through expertise in design, engineering, and project management, the company is actively engaged in advancing energy storage solutions that align with India’s clean energy ambitions. By collaborating with industry stakeholders, policymakers, and technology developers, Tata Consulting Engineers is contributing to the development of resilient and sustainable energy infrastructure for the future.