- The Rs 460-crore project will come up in Gujarat and support India meet clean energy targets by 2030
- Since 2023, IFC has aggregately extended a debit line of Rs 32.5 billion (c.$380 million) to IndiGrid
NE BUSINESS BUREAU
NEW DELHI, MUMBAI, JULY 3
To further strengthen India’s renewable energy infrastructure, IFC and IndiGrid have partnered to develop a 180 MW/360 MWh standalone battery energy storage system project in Gujarat. The project is designed to play a key role in supporting the state’s clean energy goals by enhancing grid stability and ensuring reliable power is available during peak demand.
IFC committed Rs 4.6 billion (c.$55 million) in long-term financing to IndiGrid through a subscription to listed non-convertible debentures, with c.$38.5 million from IFC’s own account and c.$16.5 million in concessional support from the Clean Technology Fund (CTF), one of the multi-donor trust funds under the World Bank-hosted Climate Investment Funds framework.
India’s power sector is undergoing a structural shift as the country advances toward its target of 500 GW of clean energy capacity by 2030. The increasing integration of solar and wind energy introduces new challenges for grid stability, peak load management, and dispatch reliability. Utility-scale battery storage is emerging as a critical solution to address to grid stability challenges, including peak load management and dispatch reliability, while enabling greater integration of solar and wind energy.
Harsh Shah, Managing Director, 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.”
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 (c.$380 million) to IndiGrid.
