In a landmark move for India’s clean energy infrastructure, the International Finance Corporation (IFC) has committed $55 million via non-convertible debentures to IndiGrid, India’s first publicly listed power infrastructure investment trust. The funding will be used to develop what is poised to be the country’s largest standalone Battery Energy Storage System (BESS).
This investment not only signals a rising institutional appetite for long-duration, dispatchable clean power, but also serves as a vote of confidence in IndiGrid’s ability to lead India’s utility-scale storage transition.
IndiGrid’s BESS Journey: From Competitive Bids to Market Leadership
IFC’s latest bet comes on the heels of IndiGrid’s strong performance in India’s BESS tenders, where it emerged as a recurring low bidder with some of the most competitive tariffs in the market.
In the last two years, IndiGrid secured:
| Month-Year | Agency | Capacity (MW) | Capacity (MWh) | L1 Tariff (INR Lakh/MW/month) |
|---|---|---|---|---|
| Sep-23 | BRPL | 20 | 40 | 4.75 |
| Nov-23 | GUVNL Ph 2 | 180 | 360 | 4.50 |
| Oct-24 | NVVN ESS1 | 250 | 500 | 2.37 |
These wins reflect not only IndiGrid’s technological readiness but also its cost competitiveness and ability to structure bankable projects in a fast-evolving policy landscape.
🧵 Read our earlier detailed analysis of recent BESS auctions in India, where tariffs dipped below ₹2.5 lakh/month for the first time and bidding volumes surged: Recent BESS Tenders and Trends
A Broader Trend: Blending Climate Finance for Dispatchable Clean Power
The IFC–IndiGrid partnership fits into a broader trend of blended finance catalyzing storage deployment in emerging markets. Storage—especially standalone systems—is critical for India’s ambition of 24×7 clean power, helping manage variability from solar and wind sources.
IFC’s use of non-convertible debentures offers IndiGrid low-cost, long-tenure capital, enabling commercially viable business models for assets that previously faced high risk premiums. This type of support is vital to accelerate India’s 2030 targets of 500 GW of non-fossil capacity and a 40–50 GWh of grid-connected storage capacity.
As India scales up storage through VGF schemes, ISTS waivers, and state mandates (like in Gujarat and Tamil Nadu), players like IndiGrid will be central to shaping the next decade of clean energy infrastructure. IFC’s commitment is not just financial—it’s strategic.
With deep pipeline visibility and execution strength, IndiGrid may well set the benchmark for cost, reliability, and replicability in standalone battery storage.
