The Economic Breakthrough in BESS Tariff Structures

Time: 14:20 - 14:50
Date: 31 October 2025

Synopsis

Tariffs have plummeted from ₹1.08 million (~$12,570)/MW/month in 2022 to a mere ₹221,000 (~$2,550)/MW/month in recent tenders. This precipitous 40% decline compared to non-VGF projects represents not just a pricing adjustment but a fundamental market realignment that could accelerate India’s energy transition timeline. Reduced import duties create more favourable CAPEX environment, potentially unlocking a new wave of investment in a sector previously constrained by economic viability concerns.

  • How have global battery supply chain developments contributed to the tariff reductions?
  • With CAPEX requirements significantly reduced, what new financing models are emerging?
  • How do India’s current BESS tariffs compare globally, and what does this mean for the country’s position in the international energy storage market?
  • What technologies are winning in this new price environment?
  • What is your forecast for BESS tariffs over the next 3-5 years? Will we see continued declines or stabilization?

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