To support the continued expansion of India’s renewable energy infrastructure, IFC and IndiGrid have partnered to develop a 180 MW/360 MWh standalone battery energy storage system (BESS) project in Gujarat. This project is expected to play a significant role in strengthening the state’s clean energy ecosystem by enhancing grid stability and ensuring consistent power availability, particularly during periods of high demand.
As part of the agreement, IFC has committed long-term financing of INR 4.6 billion (approximately USD 55 million) to IndiGrid. This includes around USD 38.5 million from IFC’s own account and an additional USD 16.5 million in concessional funding provided by the Clean Technology Fund, which operates under the Climate Investment Funds and partners exclusively with multilateral development banks. The funding was finalized during the quarter ending June 30, 2025.
The initiative comes at a time when India’s power sector is experiencing a major transformation, driven by the national goal of reaching 500 GW of clean energy capacity by 2030. As solar and wind power continue to make up a larger share of the energy mix, challenges related to grid stability, peak demand management, and reliable energy dispatch are becoming more pronounced. Utility-scale battery storage projects like this one are increasingly recognized as vital to overcoming these hurdles and enabling the efficient use of renewable energy.
Harsh Shah, Managing Director, IndiGrid, said in a statement, “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, mentioned, “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.”
This new investment builds on a longstanding partnership between IFC and IndiGrid, reinforcing their shared commitment to advancing clean, commercially viable, and inclusive energy solutions. Since 2023, IFC has extended a total debt line of approximately INR 32.5 billion (around USD 380 million) to IndiGrid, further highlighting the depth of collaboration between the two entities in scaling up India’s sustainable energy infrastructure.
