India's BESS Policy Landscape in 2025: What Changed and What's Coming
India's battery storage policy moved faster in 2024–25 than in the preceding five years combined. SECI's 4,000 MWh standalone BESS tender, MNRE's viability gap funding (VGF) framework, and CERC's revised grid code — three simultaneous shifts that have fundamentally reset the economics of battery storage deployment in India. Here is a briefing for project developers and grid operators trying to map the opportunity.
SECI's standalone BESS tender
The Solar Energy Corporation of India issued its first large-scale standalone BESS procurement tender in late 2024 — 4,000 MWh across multiple locations, with a tariff-based bidding structure. The tender structure is significant because it separates storage from generation, allowing independent power producers to build BESS projects without bundling solar or wind capacity.
Discovered tariffs came in at ₹8.2–9.1/kWh for discharge — higher than most analysts expected, reflecting the current capital cost environment and the risk premium on a nascent procurement structure. As financing matures and local manufacturing (under ALMM) scales, tariffs for subsequent tenders should compress to ₹6–7/kWh within two years.
Viability gap funding
MNRE's VGF framework for BESS provides up to 40% capital subsidy for projects that meet specified domestic content requirements. The domestic content requirement is the critical constraint: cells and modules must be sourced from ALMM-listed manufacturers. This is where India's manufacturing ambition and its procurement timeline collide — ALMM-listed capacity for LFP cells remains limited.
SilicIndia Energies' Mandvi facility is in the ALMM qualification process. Developers scoping projects for the 2026–27 procurement window should factor manufacturing lead times into their timelines.
CERC's revised grid code
The Central Electricity Regulatory Commission released revised grid codes in early 2025 that for the first time treat BESS as a defined asset class — distinct from generation, distinct from demand response. Key provisions:
- BESS can participate in both energy and ancillary markets simultaneously
- State-of-charge (SOC) constraints must be disclosed to SLDC/RLDC
- Minimum response time for frequency regulation: 200 ms
- Metering at both AC and DC boundaries required
The 200 ms frequency response requirement effectively mandates utility-scale BESS over other storage technologies for frequency regulation applications. Our SI-BMS achieves sub-100 ms response at the rack level, with system-level response under 150 ms including inverter latency.
The opportunity window
India needs 47 GWh of grid-connected storage by 2030 under the National Electricity Plan. Current commissioned capacity is under 1 GWh. The procurement pipeline being built — SECI, state DISCOMs, renewable generators seeking firm capacity — will attempt to close that gap in five years. The manufacturers with proven products, certified equipment, and demonstrated project references in 2025–26 will be positioned for the bulk of that volume.
The window to establish a manufacturing and project track record is now. It will not be as open in 2027.
What developers should be doing today
Pre-qualify equipment. CERC and DISCOM tenders increasingly require IEC 62619 / IEC 62933 certification. Projects that go to bid with uncertified equipment face disqualification.
Map your land and grid. Standalone BESS projects need grid connection agreements. The queue is already building at many ISTS substations.
Lock in EPC capacity. Experienced BESS EPC contractors in India are few. The ones with demonstrated commissioning experience are already scheduling into late 2026.
Engage manufacturers early. Lead times for certified BESS containers are 16–20 weeks ex-works. The projects that commission on schedule in 2026 are placing orders now.
SilicIndia Energies is available for early-stage project discussions. Contact us to begin the scoping conversation.
