Adani Green to turn battery storage into a major growth engine

The company has an operational battery energy storage systems (BESS) capacity of 6.63 GWh at Khavda, accounting for more than 50% of the country's operational battery storage capacity. It expects to cross 10 GWh during FY27 and has set a target of 50 GWh over the next five years. AGEL expects its BESS portfolio to generate around Rs 25 lakh of EBITDA per megawatt hour from a thumb rule perspective.

The company is funding BESS capacity at around ₹1.5 crore per MWh, according to Khanna. AGEL sees batteries playing an increasingly strategic role at Khavda, helping the company manage transmission constraints and reduce renewable energy curtailment. During its H1 FY27 earnings call Khanna said , “We will continue to closely monitor the developments on transmission infrastructure availability at Khavda.

At the same time, we have significantly accelerated the development of BESS to insulate ourselves from delays on the transmission network.” Batteries enable renewable generation to be stored when required and dispatched subsequently, providing greater flexibility in managing the mismatch between generation and evacuation capacity. Khanna described this capability as “virtual transmission”, reflecting storage's expanding role beyond conventional peak-shifting.

Khanna said large battery installations can be deployed relatively quickly, require limited additional land and can utilise existing substation infrastructure. Adani Green achieved 6.63 GWh within 14 months of commencing on-site BESS construction at Khavda, Gujarat. The BESS is integrated with AGEL’s renewable energy (RE) development at Khavda, where the company is developing a 30 GW RE plant across 538 square kilometers.

AGEL expects to exceed 10 GWh BESS at Khavda in FY27. The company is simultaneously developing its maiden 500 MW pumped-storage project at Chitravathi, which is progressing towards completion by year-end, giving it a complementary storage platform alongside batteries. AGEL has a target of over 5 GW pumped storage project by 2030. "The strategy represents Adani Green’s shift from pure renewable generation towards firm and dispatchable clean energy, with solar, wind, batteries and pumped storage increasingly operating as an integrated portfolio," said an analyst.

Over the longer term, the 50 GWh BESS target could establish storage as a significant standalone contributor to the company's growth and earnings, he said.