India's battery price surge threatens 8 to 9 GWh projects
India's big plans for battery-powered energy storage are hitting a bump: battery prices are climbing fast, putting 8 to 9 GWh of new projects at risk of delays.
Crisil Ratings points to pricier raw materials, high global demand, supply-chain pressures, and currency swings as the reasons behind the surge.
Indian developers face weak battery returns
Right now, lithium iron phosphate batteries cost $70 to $75 per kilowatt-hour, says Kartik Teltia, Managing Director of Solarworld Energy Solutions.
Nearly 21% of under-construction BESS capacity, or about 12 GWh, faces weak returns, and developers may have to rethink their budgets.
Still, experts expect huge growth ahead, with 45-50 GWh expected to be commissioned across FY27 and FY28 (50-55 GWh scheduled across those two years), but managing costs and supply will be key as India shifts toward more renewable energy.