To enhance India's renewable energy framework, the IFC and IndiGrid have joined forces to establish a standalone battery energy storage system project in Gujarat, with a capacity of 180 MW/360 MWh. This initiative is intended to significantly contribute to the state’s clean energy objectives by improving grid stability and providing dependable power during peak demand periods.

The IFC has pledged Rs 4.6 billion in long-term financing to IndiGrid by subscribing to listed non-convertible debentures, which includes $38.5 million from IFC’s funds and $16.5 million in concessional support from the Clean Technology Fund (CTF), part of the multi-donor trust funds within the World Bank-hosted Climate Investment Funds framework.

India's power sector is experiencing a fundamental transformation as the nation works towards its goal of achieving 500 GW of clean energy capacity by 2030. The growing incorporation of solar and wind energy presents new obstacles for grid stability, peak load management, and dispatch reliability.

Utility-scale battery storage is becoming an essential solution to tackle these grid stability issues, including peak load management and dispatch reliability, while facilitating greater integration of solar and wind energy sources.

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Harsh Shah, MD, IndiGrid, said, “Battery Energy Storage Systems are central to the future of energy in India. They bridge the intermittency of renewables, reduce fossil fuel dependency, and unlock flexible, reliable power delivery. With IFC’s support, we are proud to lead the deployment of one of India’s first and largest BESS assets in Gujarat. This project represents a strategic milestone in building next-generation infrastructure that is clean, resilient, and future-ready.”

Imad N Fakhoury, regional director for South Asia, IFC, said, “Expanding access to reliable, affordable electricity is central to development and IFC’s mission in emerging markets. Battery energy storage is critical for diversifying India’s energy mix and ensuring clean power is available when demand is highest." 

"IndiGrid has been a trusted partner to IFC in advancing sustainable and inclusive infrastructure in India. Our latest investment supports Gujarat’s goal of achieving 100 GW of renewable capacity by 2030, and sets a replicable model for other states as they scale up next-generation commercially viable energy solutions,” adds Imad.

 

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This investment made during the quarter ended June 30, 2025, builds on an existing collaboration between IFC and IndiGrid and reflects our shared vision of catalyzing investments in clean, inclusive, and commercially viable energy solutions. Since 2023, IFC has aggregately extended a debit line of Rs 32.5 billion to IndiGrid.