India Power: Solar goes moonlighting

Research evidence excerpt

India Power: Solar goes moonlighting

22 June 2026

Equities

Utilities India Power

Solar goes moonlighting India

◆ Storage contribution during evening peak reaches c4.5GW Puneet Gulati*, CFA

as operational BESS capacity rises to 7.5GWh Senior Analyst, India Energy, Property & Infra

HSBC Securities and Capital Markets (India) Private Limited

puneetgulati@hsbc.co.in

◆ Demand growth continues into June at 8.5% y-o-y with peak +91 82 9189 7591

demand at 260GW; solar capacity addition moderates Sambhav Kela*

Analyst, India Real Estate & Power

◆ ALMM II kicks in from 1 June, approved cell manufacturing sambhav.kela@hsbc.co.in

capacity at 30.5GW to keep module supply tight +91 22 40891464

Energy storage stepping up amidst worries of solar curtailment and evening * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations.

peak shortage. Battery energy storage system (BESS) capacity in India reached

2.7GW / 7.5GWh, with May alone witnessing 1.6GWh of capacity addition as RE

developers capitalize on merchant arbitrage opportunity. Energy storage systems are

increasingly contributing to cater to the evening peak demand, with BESS and PSP

contributing as much as c4.5GW at the time of evening peak of c240GW at 22:45 on

2 June while drawing a similar maximum amount during solar hours (see page 2 for

the average renewable curve in June). The under-construction BESS pipeline stands

at c42GWh, with another c40GWh of awarded projects in the pipeline. India is set to

witness significant BESS capacity addition over the next three years, with CEA

estimating capacity to reach c25GWh by the end of this fiscal year and 91GWh /

139GWh by FY28 / FY29 end.

Delayed rains, rising heatwaves cause power demand to soar as we brace for