Gujarat powers clean energy future with IndiGrid and IFC building largest battery storage project
Gujarat is rapidly emerging as a leader in India’s clean energy transition, and the latest development further cements its position at the forefront of sustainable infrastructure. The International Finance Corporation (IFC), a member of the World Bank Group, has committed a substantial investment of ₹460 crore to IndiGrid. This funding will support the creation of India’s largest standalone battery energy storage system (BESS) project, a critical step in enhancing the state’s power grid reliability and promoting renewable energy integration.
This transformative project is not just about building another energy asset. It represents a strategic milestone for India’s evolving power ecosystem. The planned battery energy storage facility in Gujarat is designed to act as a buffer in the power supply chain, ensuring that clean energy generated through solar and wind sources is stored and dispatched efficiently during periods of peak demand. As India accelerates toward its ambitious target of achieving 500 GW of clean energy capacity by 2030, innovations like this BESS will play a pivotal role.
The financial structure of the deal includes long-term financing of USD 55 million, which roughly converts to ₹460 crore. Of this, USD 38.5 million will come directly from IFC’s own account, while USD 16.5 million will be concessional support sourced from the Clean Technology Fund. This fund is part of the larger Climate Investment Funds framework hosted by the World Bank. The combination of standard and concessional finance reflects a growing confidence in India’s renewable energy infrastructure and its potential to lead on the global energy stage.
According to IFC’s senior official the investment aligns perfectly with the organisation’s development goals. “Expanding access to reliable, affordable electricity is central to development and IFC’s mission in emerging markets,” Fakhoury stated. He emphasized that battery energy storage is no longer a futuristic idea—it is essential infrastructure for ensuring clean power is available when demand is highest. For a country like India, where the energy demand continues to grow alongside industrialization and urbanization, such solutions are no longer optional but urgent necessities.
The increasing adoption of solar and wind energy has introduced fresh challenges for the power grid. These sources, while clean, are intermittent in nature. Solar power is available only during the day, and wind energy is dependent on fluctuating wind patterns. As a result, ensuring consistent power supply, especially during peak hours, has become a challenge. Battery storage helps solve this problem by absorbing excess energy generated during non-peak periods and releasing it when the demand spikes. This not only stabilizes the grid but also reduces the dependency on fossil fuel-based peaker plants, which are expensive and polluting.
For IndiGrid, the collaboration with IFC marks another major achievement. The company has already established itself as a key player in India’s sustainable infrastructure landscape. Senior official of IndiGrid, commented on the project saying, “With IFC’s support, we are proud to lead the deployment of one of India’s first and largest battery energy storage assets in Gujarat. This project represents a strategic milestone in building next-generation infrastructure that is clean, resilient, and future-ready.”
What sets this project apart is not just its size but also its replicability. The model being implemented in Gujarat is designed with scalability in mind, allowing other Indian states to replicate it. As Gujarat pursues its goal of 100 GW of renewable energy capacity by 2030, it is setting a precedent for other states to follow suit. This project is expected to serve as a blueprint for how state-level clean energy ambitions can be transformed into actionable, bankable infrastructure developments.
India’s power sector is undergoing a structural transformation, moving steadily from conventional thermal power sources to renewables. As of now, utility-scale battery storage projects remain in their early stages, but industry experts agree that their adoption is set to soar. This is being driven not only by regulatory pushes but also by falling battery costs, rising investor interest, and increasing pressure on utilities to improve grid resilience.
Furthermore, large-scale storage systems open up possibilities for new revenue streams, such as frequency regulation and ancillary services. This adds a layer of financial viability to battery storage projects, making them attractive not just from an environmental standpoint but also from a commercial perspective. IFC’s investment signals that global institutions are paying close attention to India’s energy sector. With this level of support and vision, projects like the one in Gujarat are more than just infrastructure—they are symbols of a future where clean energy is both practical and profitable. For Gujarat, the battery storage facility is more than a technical asset; it is an affirmation of its leadership in India’s energy revolution.
As the country races toward 2030, infrastructure like this will become the backbone of India’s green economy. From reduced carbon emissions to greater energy security and more resilient grids, the benefits are manifold. Gujarat, with its forward-thinking policies and partnerships, is once again leading the way—powering progress, one innovation at a time.
