IFC and IndiGrid Launch Gujarat’s Largest Grid-Scale Battery Storage Project

In a significant step toward modernizing India’s energy infrastructure and accelerating the clean energy transition, the International Finance Corporation (IFC) and India Grid Trust (IndiGrid) [BSE: 540565 | NSE: INDIGRID] have teamed up to develop a groundbreaking standalone Battery Energy Storage System (BESS) project in Gujarat. The facility, with a capacity of 180 megawatts and 360 megawatt-hours, will be among the first and largest of its kind in India.

Designed to boost Gujarat’s clean energy ambitions, this utility-scale battery storage installation will play a crucial role in maintaining grid stability and improving peak demand reliability. As India increasingly integrates intermittent renewable sources like solar and wind, battery storage becomes essential to ensure power is available when it's needed most.

IFC’s Financial Backing: Over INR 4.6 Billion Investment

IFC has committed INR 4.6 billion (approximately USD 55 million) in long-term financing for this initiative through listed non-convertible debentures (NCDs) issued by IndiGrid. The funding comprises around USD 38.5 million from IFC’s own account and USD 16.5 million in concessional climate-focused capital from the Climate Investment Funds’ Clean Technology Fund (CTF). The CTF, managed through multilateral development banks, supports scalable low-carbon technologies in developing countries.

This investment marks another milestone in a broader collaboration between IFC and IndiGrid. Since 2023, IFC has provided a cumulative credit line of INR 32.5 billion (approx. USD 380 million) to support IndiGrid’s sustainable infrastructure expansion.

Powering India’s 2030 Clean Energy Vision

India aims to achieve 500 GW of clean energy capacity by 2030—a target that requires systemic transformation of the power sector. As solar and wind sources become more prevalent, ensuring consistent supply and mitigating volatility are critical challenges. Battery storage enables time-shifting of renewable energy, load balancing, and frequency regulation, helping utilities avoid curtailment and maintain system reliability.

According to Harsh Shah, Managing Director of IndiGrid, “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.”

IFC’s Strategic Role in Sustainable Development

Imad N Fakhoury, IFC’s Regional Director for South Asia, highlighted the transformative nature of this project: “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.”

He emphasized that the Gujarat project aligns with the state's objective to build 100 GW of renewable energy capacity by 2030. It also establishes a replicable, bankable model for other Indian states aiming to scale up energy storage and clean power integration.

Looking Ahead: A Blueprint for National Replication

The IFC-IndiGrid partnership exemplifies how multilateral collaboration, innovative finance, and forward-looking infrastructure planning can enable energy transitions in developing economies. With this new project, Gujarat is poised to become a trailblazer in battery storage technology, setting a precedent for the rest of India.

As the country ramps up investments in flexible and resilient grid systems, the deployment of utility-scale battery energy storage is likely to become a cornerstone of national policy and infrastructure planning.