In a major leap toward strengthening India’s renewable energy capacity, IndiGrid Investment Managers Limited and the International Finance Corporation (IFC) have announced a strategic partnership to develop India’s largest utility-scale battery energy storage system (BESS) in Gujarat. The 180 MW/360 MWh standalone BESS project will be instrumental in stabilizing the state’s energy grid, particularly during peak demand periods, and will play a pivotal role in helping Gujarat reach its 100 GW renewable energy target by 2030.

The announcement was made on July 3, 2025, through a joint press release by IndiGrid [BSE: 540565 | NSE: INDIGRID] and IFC. This collaboration reflects their shared commitment to advancing clean, inclusive, and commercially viable energy infrastructure in India.

IFC’s Strategic Investment

To fund this ambitious project, IFC has committed ₹4.6 billion (approximately $55 million) in long-term financing to IndiGrid. The financing is structured through a subscription to listed non-convertible debentures (NCDs), with $38.5 million contributed from IFC’s own account and an additional $16.5 million in concessional support from the Clean Technology Fund (CTF)—a key component under the World Bank-hosted Climate Investment Funds framework.

This investment is part of a broader strategic engagement between IFC and IndiGrid. Since 2023, IFC has cumulatively provided ₹32.5 billion (around $380 million) in debt lines to IndiGrid, demonstrating long-term confidence in its mission and execution capabilities.

Addressing India’s Energy Storage Challenge

As India continues its structural energy transition with an ambitious goal of achieving 500 GW of clean energy capacity by 2030, grid reliability and stability have emerged as critical issues. The intermittent nature of solar and wind energy poses challenges in managing power supply during peak hours. This is where utility-scale battery energy storage systems offer a transformative solution.

According to Harsh Shah, Managing Director of IndiGrid, BESS solutions “bridge the intermittency of renewables, reduce fossil fuel dependency, and unlock flexible, reliable power delivery.” He emphasized that this project marks a strategic milestone in India's journey towards building resilient and future-ready energy infrastructure.

A Model for Other States

Imad N. Fakhoury, Regional Director for South Asia at IFC, reaffirmed the importance of this partnership:

"Battery energy storage is critical for diversifying India’s energy mix and ensuring clean power is available when demand is highest."

He added that this project not only advances Gujarat’s renewable energy ambitions but also sets a replicable model for other Indian states aiming to scale up similar next-gen clean energy solutions.

About IndiGrid

IndiGrid is India’s first Infrastructure Investment Trust (InvIT) in the power sector. It owns an expansive portfolio of 43 power projects, including 53 transmission lines spanning over 9,336 circuit kilometers (ckms), 16 substations with a combined 25,050 MVA capacity, 1.15 GWAC (1.5 GWp) of solar generation capacity, and 450 MW / 900 MWh of battery storage systems. The total Assets Under Management (AUM) exceed ₹319 billion (~USD 3.7 billion).

IndiGrid’s investment manager is wholly owned by global investment firm KKR, further solidifying its position as a trusted partner in India's energy transformation journey.

About IFC

The International Finance Corporation (IFC) is the largest global development institution focused on private sector growth in emerging markets. A member of the World Bank Group, IFC operates in over 100 countries and committed a record $56 billion in fiscal 2024 to drive economic development through private capital mobilization. IFC aims to help create markets and build a livable planet free of poverty.

Clean Technology Fund (CTF)

The concessional funding provided by CTF for this project is part of a larger climate investment initiative hosted by the World Bank. CTF focuses on accelerating the deployment of clean technology, especially in emerging economies where the risks are higher but the climate payoff is significant.

Importance of Battery Energy Storage in India

The Indian energy ecosystem is evolving rapidly. The increasing shift from conventional to renewable power generation has made energy storage a cornerstone of the transition. BESS solutions not only enable storage of excess power generated during the day but also ensure its optimal utilization during high demand periods—thus improving the resilience and efficiency of the power grid.

Utility-scale BESS assets like the one being deployed in Gujarat will help smoothen peak-load fluctuations, facilitate greater renewable energy integration, and reduce dependence on fossil-fuel-based peaking power plants.

Looking Ahead

The 180 MW/360 MWh BESS project is expected to set new benchmarks in energy innovation and infrastructure reliability in India. With global partners like IFC backing the initiative, IndiGrid is poised to lead the next phase of energy transformation in the country.

This strategic project not only elevates Gujarat’s energy landscape but also serves as a national model for scalable, sustainable energy infrastructure. It reinforces India’s stance on clean energy leadership, showcasing the country’s commitment to balancing development with climate-conscious solutions.

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