India’s clean energy momentum is gaining pace, with 22 GW of solar capacity installed in the first half of 2025 and a record 7.6 GW of Battery Energy Storage Systems (BESS) tendered, according to new analysis from global power markets analytics provider Aurora Energy Research.
To support stakeholders navigating this rapidly evolving sector, Aurora has launched its Flexible Energy Market Forecast on August 29. The service provides detailed insights into both co-located and standalone battery projects, drawing on global experience in development, financing, and deployment.
As solar tariffs approach near-zero during daylight hours and surge to the price cap at midnight, battery storage is emerging as a crucial solution to balance supply and capture price volatility, Aurora’s analysis notes.
The study highlights that falling tariffs in standalone battery tenders are prompting closer scrutiny of supplier quality and pricing. Debabrata Ghosh, Market Head, India at Aurora Energy Research, explained that while tier 2 batteries often appear more competitive for 12-year contracts, tier 1 batteries with longer lifecycles can deliver better long-term returns in merchant projects.
Siddhant Shah, Research Associate at Aurora, added that operational factors—including auxiliary power consumption that varies with temperature—are becoming critical in project viability assessments. In regions like Gujarat and Rajasthan, Aurora finds that merchant co-located solar-plus-storage projects could yield returns up to 6 percentage points higher than tendered projects if optimally sized.
With solar prices declining and storage economics improving, Aurora’s new service aims to provide data-driven clarity for investors and developers, ensuring India’s clean energy transition remains on track.
