IFC Commits ₹460 Crore to IndiGrid for India’s Largest Battery Energy Storage Project
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In a significant move to bolster clean energy initiatives, the International Finance Corporation (IFC), a member of the World Bank Group, has committed ₹460 crore to IndiGrid for the development of India’s largest standalone battery energy storage system in Gujarat. This ambitious project aims to enhance grid stability and ensure a reliable power supply during peak demand periods, thus supporting Gujarat’s clean energy objectives.
The long-term funding, which amounts to USD 55 million (approximately ₹460 crore), will be provided through a subscription to listed non-convertible debentures. This includes USD 38.5 million from IFC’s own resources and USD 16.5 million from the Clean Technology Fund, a multi-donor trust fund within the Climate Investment Funds framework hosted by the World Bank.
Imad N. Fakhoury, the IFC Regional Director for South Asia, emphasized the importance of reliable and affordable electricity access as a central aspect of development, particularly in emerging markets. He noted that “battery energy storage is critical for diversifying India’s energy mix and ensuring clean power is available when demand is highest.”
IndiGrid has established itself as a reliable partner for IFC in promoting sustainable and inclusive infrastructure in India, and this latest investment aligns with Gujarat’s ambitious target of achieving 100 GW of renewable energy capacity by 2030. Additionally, it serves as a replicable model for other states aiming to enhance their clean energy frameworks.
As India progresses towards its goal of 500 GW of clean energy capacity by 2030, the power sector is undergoing a transformative shift. The increasing integration of solar and wind energy presents new challenges related to grid stability, peak load management, and dispatch reliability. Utility-scale battery storage is emerging as a vital solution to these challenges, facilitating better management of peak loads while enabling greater integration of renewable energy sources.
Harsh Shah, Managing Director of IndiGrid, expressed pride in leading the deployment of one of India’s first and largest battery energy storage systems in Gujarat, describing the project as a strategic milestone in developing next-generation infrastructure that is clean, resilient, and prepared for future demands.
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