India added a record 22 GW of renewable energy capacity in the first half of 2025, marking a 57% increase over the 14.2 GW installed during the same period in 2024. The additions include 18.4 GW of solar, 3.5 GW of wind, and 250 MW of bioenergy — the highest-ever six-month renewable growth in the country’s history.
The surge comes as developers rush to capitalize on the Interstate Transmission System (ISTS) charge waiver, which begins phasing out from 2025 until full elimination by 2028. The waiver has significantly reduced project costs and incentivized early deployment.
Crucially, the first half of 2025 also saw India achieve its largest-ever allocation of Battery Energy Storage Systems (BESS) — a total of 7.6 GW, split between 5.4 GW of collocated solar+BESS and 2.2 GW of standalone BESS. This milestone reflects growing attention to grid flexibility and renewable integration.
Tariffs averaged INR 3,208 ($38.50)/MWh for collocated solar-BESS projects and INR 4,000 ($48.02)/MWh for standalone BESS, continuing the downward pricing trend. According to Rystad Energy, this price signal could drive greater adoption of hybrid installations, improving system reliability and economics.
Major developers made bold entries into the storage space:
- Jindal Group secured 990 MW of collocated capacity
- NTPC and ReNew Power won 900 MW each
- JSW Energy led the standalone segment with 625 MW
- Reliance Power secured 525 MW, and Adani Green acquired 510 MW of collocated solar-BESS
India’s total installed renewable capacity has now reached 234 GW, edging closer to its goal of sourcing 50% of power capacity from clean energy. However, fossil fuels remain dominant in actual electricity generation, contributing about 75% of output in H1 2025.
The government’s plan to install 80 GW of new coal capacity underscores the balancing act between energy security and decarbonization. Experts warn that without urgent investment in grid upgrades and affordable long-duration storage, India’s net-zero ambitions could falter.
Nonetheless, the record BESS awards signal a positive shift. If supported by consistent policy and cost improvements, storage could become central to India’s evolving energy mix.
