Adani Green Energy Ltd (AGEL) is planning a major scale-up of its Battery Energy Storage Systems (BESS) at the Khavda renewable energy park in Gujarat, with total capacity set to exceed 7 GWh by FY27. The expansion forms part of a broader capital expenditure programme of ₹25,000–₹40,000 crore aimed at strengthening grid resilience and improving project economics. The company will commission 3.5 GWh of battery storage by the end of the current financial year, marking what it describes as India’s largest operational BESS project.
Storage Becomes Strategic as Grid Bottlenecks Persist
Battery storage has emerged as a strategic priority for Adani Green as delays in grid augmentation continue to limit power evacuation from Khavda, located near the India–Pakistan border in Gujarat’s Kutch district. On a near-term basis, storage will help absorb electricity that would otherwise face curtailment due to evacuation constraints. “Battery storage will help in absorbing the power which would otherwise have been curtailed,” said Ashish Khanna, CEO of Adani Green Energy, adding that storage provides critical flexibility until long-term transmission capacity is fully aligned with project commissioning.
3.5 GWh to Go Live by March-End
By March-end, Adani Green will bring 3.5 GWh of BESS capacity online at Khavda. The company has already indicated that it plans to more than double this capacity in the following year. “We are going to commission 3.5 GWh of BESS capacity. We plan to add more than double the capacity in the coming year,” Khanna told investors, signalling that total storage capacity could cross 7 GWh in FY27. Adani Green formally announced its entry into large-scale BESS deployment at Khavda in November 2025.
Revenue Upside from Solar-Storage Co-location
Beyond grid management, co-locating battery storage with solar generation is expected to significantly enhance revenue realisations. Stored solar power can be dispatched during peak demand periods, allowing the company to benefit from price arbitrage. “With solar power going as an input to this, we are going to realise much better revenue from the stored power,” Khanna said. He highlighted the opportunity to inject solar power into storage systems and release it during peak pricing hours, while also reducing exposure to grid curtailment risks. “There is a great arbitrage available with us for infusing solar power co-located with battery storage and then taking full advantage of peak power pricing,” he added.
Capex to Rise to ₹40,000 Crore
The accelerated BESS rollout is a key pillar of Adani Green’s capex roadmap for the coming year. The company expects its capital expenditure to rise sharply compared to the current year. “For next year, we are looking at capex in the range of ₹25,000–₹40,000 crore,” Khanna said, adding that funding visibility remains strong. He noted that a significant portion of the required debt has already been sanctioned, ensuring adequate liquidity for the next phase of expansion.
Storage to Anchor Near-Term Growth
As reported by thehindubusinessline.com, with most of its near-term capacity additions concentrated in Rajasthan and Khavda, Adani Green sees battery storage as central to smoothing output fluctuations and managing operational risks as its renewable portfolio scales up. “Evacuation is a challenge on a short-term basis,” Khanna said. “To mitigate that risk, battery storage will come in handy,” he added.
