4 Battery Energy Storage System (BESS) Stocks Riding India's Clean Energy Transition

Battery Energy Storage Systems (BESS) are emerging as a crucial pillar of the global energy transition, enabling grid stability and efficient storage of renewable power for later use.

As India's energy landscape rapidly evolves, companies are accelerating capacity additions in this space to support round-the-clock power availability.

According to a PIB press release from August 2025, citing the Ministry of New and Renewable Energy, India has achieved 100 GW of total solar photovoltaic (PV) module manufacturing capacity.

However, renewable sources such as solar and wind generate power intermittently, only when the sun shines or the wind blows, creating challenges for grid stability and demand management.

This is where BESS plays a vital role. By storing surplus electricity and releasing it during periods of peak demand or low generation, these systems help balance the grid and improve the reliability of renewable energy.

Against this backdrop, this editorial looks at four BESS stocks riding India's clean energy transition.

#1 Vikram Solar

First on the list is Vikram Solar.

The company is one of the leading Indian solar module manufacturers, specialising in efficient photovoltaic (PV) module manufacturing.

It is one of the largest PV module manufacturers in India with a cumulative production capacity of 4.5 GW.

In the BESS space, Vikram Solar on 16 December 2025 approved a capital expenditure (capex) of about Rs 43.7 billion (bn) to be undertaken through wholly owned subsidiary, VSL Powerhive, for Phase 1 of its battery energy storage system (BESS).

This capex is to be funded through a combination of debt and equity. Powerhives' long-term roadmap outlines a planned 30 GWh of battery cell, module/pack, and BESS manufacturing capacity to be developed in a phased manner.

As part of Phase 1, VSL Powerhive will commission a 5 GWh BESS manufacturing facility at Oragadam, Tamil Nadu, by FY27.

Further, Vikram Solar is also advancing backward integration into battery cell manufacturing, with plans to set up a 7.5 GWh cell manufacturing facility that is expected to be fully operational by FY29, subject to receipt of applicable statutory and regulatory approvals.

A core component of this venture will be a dedicated R&D lab, tasked with developing future-ready battery products and innovative solutions to maintain market leadership.

For more details, see the Vikram Solar Ltd company fact sheet and quarterly results.

#2 ACME Solar Holdings

Next on the list is ACME Solar Holdings.

ACME Solar is one of India's largest renewable IPPs, operating across solar, hybrid, wind, and battery-based firm and dispatchable renewable energy (FDRE).

In September 2025, ACME Solar Holdings, through its wholly owned subsidiaries, signed Battery Energy Storage Purchase Agreements (BESPA) with NHPC for two standalone BESS projects. The agreements cover a total contracted capacity of 275 MW/550 MWh.

These projects were secured through an e-reverse auction held on 24 June 2025, at tariffs of Rs 210,000 per MW per month for the 50 MW/100 MWh project and Rs 222,000 per MW per month for the 225 MW/450 MWh project.

These projects are one-of-a-kind projects being developed in Andhra Pradesh and are expected to be commissioned within 18 months from signing of the BESPA.

Going forward, the company plans to scale up its standalone BESS portfolio, supporting grid stability with a faster capex-to-revenue cycle and lower land and connectivity requirements. Its targeting 10 GW of generation capacity and 15 GWh of BESS capacity by 2030.

For more details, see the ACME Solar Holdings Ltd company fact sheet and quarterly results.

#3 Tata Power

Next on the list is Tata Power.

The Tata group firm is India's largest integrated power company.

Tata Power was a pioneer in adopting BESS technology. The company has been in the BESS space since 2019. The company is involved in the business of generation, transmission, and distribution of electricity. It also manufactures solar roofs and builds EV charging stations.

In February 2025, the company signed an MoU with ONGC to explore joint opportunities across the BESS value chain.

This was followed by an announcement in April 2025 to install a 100 MW battery energy storage system in Mumbai over the next two years, while also integrating BESS at renewable energy sites to enable round-the-clock clean power supply.

In May 2025, a Tata Power subsidiary commissioned India's largest solar-plus-storage project, comprising a 100 MW solar PV plant coupled with a 120 MWh utility-scale BESS. Tata Power Renewable Energy Limited (TPREL) signed a Battery Energy Storage Purchase Agreement (BESPA) with NHPC in July 2025, securing its first BESS project in Kerala.

Going forward, Tata Power has set a long-term target to achieve net zero emissions by 2045.

For more details, see the Tata Power company fact sheet and quarterly results.

#4 JSW Energy

Last on the list is JSW Energy.

JSW Energy is a leading Indian power company under the JSW Group, with a diverse portfolio including thermal, hydro, wind, and solar.

SW Renew Energy Five Limited, a 100% step-down subsidiary of JSW Energy, has received Letters of Award from the Solar Energy Corporation of India (SECI) for setting up 500 MW/1,000 MWh of standalone Battery Energy Storage Systems, comprising two projects of 250 MW/500 MWh each.

Under the arrangement, the company will receive a fixed capacity charge of Rs 10.8 lakh per MW per month for a tenure of 12 years. This marks JSW Energy's entry into the energy storage segment, strengthening its position in grid stability and energy security.

SECI's offtake obligation will be limited to 60% of the project capacity, while the remaining 40% will be managed by JSW Energy.

For more details, see the JSW Energy company fact sheet and quarterly results.

Conclusion

The energy storage opportunity in India is entering a decisive growth phase. The India Energy Storage Alliance estimates that the sector could attract investments of Rs 4.79 trillion (tn) by 2032, underscoring the scale of opportunity ahead.

Meanwhile, the Central Electricity Authority projects a cumulative requirement of 411.4 GWh of energy storage capacity by 2032, comprising 175.18 GWh from pumped storage projects (PSP) and 236.22 GWh from battery energy storage systems (BESS).

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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