IFC, IndiGrid partner to build India’s largest utility-scale energy storage project

To further strengthen India’s renewable energy infrastructure, IFC (International Finance Corporation) and IndiGrid, an Infrastructure Investment Trust (InvIT) in the Indian power sector, have partnered to develop a 360 megawatt-hour (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, the company said in a statement.

IFC committed $55 million in long-term financing to IndiGrid through a subscription to listed non-convertible debentures, with $38.5 million from IFC’s own account and $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 gigawatts 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,” the company 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,” Harsh Shah, managing director of IndiGrid, said.

This project represents a strategic milestone in building next-generation infrastructure that is clean, resilient, and future-ready, said Shah.

Since 2023, IFC has aggregately extended a debit line of $380 million to IndiGrid.

“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,” Imad N Fakhoury, regional director for South Asia at IFC, said.

“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,” said Fakhoury.

The investment made during the quarter ended June 30, 2025, builds on an existing collaboration between IFC and IndiGrid.