India has inaugurated its first large-scale battery energy storage system (BESS), a 40-megawatt (MW) facility co-located with a 100-MW solar power plant in Rajnandgaon, Chhattisgarh. The pioneering project, which became operational in February 2025, represents a significant milestone in the nation's clean energy transition, demonstrating the commercial viability and grid integration capabilities of hybrid renewable energy solutions.

Developed through a collaboration between India’s Solar Energy Corporation of India Limited (SECI) and the World Bank, the 40 MW/120 MWh BESS can store up to three hours of solar power, ensuring a consistent supply of green energy to the grid even after sunset. This capability is crucial for stabilizing the grid, particularly in a state like Chhattisgarh, which has historically relied heavily on coal for electricity generation. The facility is projected to offset approximately 170,000 tons of carbon emissions annually, contributing significantly to India's climate goals.

The project's success has already catalyzed substantial market interest. Since 2018, SECI and other entities have issued tenders for BESS operations totaling approximately 38 GWh, a more than 300-fold increase from the Chhattisgarh facility's capacity. In 2024 alone, battery storage tenders were six times higher than in the preceding five years, signaling robust investor confidence and a burgeoning market for energy storage solutions across India.

Key to the project's successful execution were several strategic factors. Robust collaboration among central and state governments, local communities, and global suppliers ensured seamless development and substantial state support. SECI proactively engaged with manufacturers and testing agencies to establish performance and safety standards for large BESS projects, fostering a nascent but critical ecosystem. Furthermore, the project incorporated a grant of $8 million from the Clean Technology Fund (CTF), which helped reduce overall costs and optimize the facility’s operations, making it commercially attractive. Provisions for SECI to acquire technical know-how from the winning bidder and performance-linked payments to suppliers also played a pivotal role in ensuring efficient implementation and long-term viability.

This landmark facility, set to operate for 25 years, will provide invaluable operational insights, paving the way for future large-scale battery storage deployments. Its successful integration of solar power with grid-scale storage underscores India's commitment to achieving its ambitious target of 500 GW of non-fossil fuel energy capacity by 2030, enhancing energy security, and driving sustainable economic growth.