Adani Green plans Rs 15,000 crore BESS at Khavda FY27

What Adani Green announced

Adani Green Energy Ltd (AGEL) plans to invest about Rs 15,000 crore in the current financial year to add more than 10 gigawatt-hours (GWh) of battery energy storage capacity. The company outlined the plan during its earnings call as it shifts focus from adding renewable capacity to delivering reliable, dispatchable clean power. The proposed storage addition is over and above the roughly 3 GWh of installed storage capacity AGEL expects to reach shortly. The ramp-up comes as India’s power sector increasingly prioritises grid stability and peak supply management alongside renewable build-out.

Why battery storage is central to the plan

Battery storage helps supply electricity when renewable generation is not available in real time. AGEL said the storage systems are aimed at supplying power during peak evening demand, when solar output tapers. By smoothing load profiles, storage can support round-the-clock renewable energy supply. The company’s strategy reflects the broader market shift in India from rapid renewable capacity addition to ensuring reliability as renewable penetration rises.

Khavda is the centre of the build-out

AGEL is developing the batteries alongside renewable generation at Khavda in Gujarat. The company is building its renewable energy park at Khavda, which it describes as the world’s largest renewable energy park. Co-locating generation and storage can reduce variability and improve the ability to deliver power during evening peaks. The company has indicated that the Khavda site is where the near-term storage scale-up is taking place.

Installed base and the next milestone

AGEL said it commissioned 1.4 GWh of battery storage during FY26. Executive Director Sagar Adani said the company expects to reach 3 GWh of installed battery storage capacity at Khavda in the next few days. The planned 10+ GWh commissioning during the current financial year would be a significant step up from the existing installed base and would add to the company’s ability to offer dispatchable clean power.

Contract profile: PPAs anchor most of the capacity

According to the investor presentation post-Q4 earnings, 75% of the planned 10+ GWh storage capacity will be backed by 25-year fixed tariff power purchase agreements (PPAs). The remaining 25% is positioned as merchant and commercial opportunities, as outlined in company materials. The contract mix matters because long-term PPAs can provide revenue visibility for capital-heavy assets like grid-scale storage.

Where AGEL stands on renewables

AGEL said it has a 19.3 GW operational renewable energy portfolio, which it describes as India’s largest. The company is targeting 50 GW by FY30, according to the investor presentation. Its current operational mix is 70% solar projects, 13% wind and 17% hybrid. The battery storage build-out is being positioned as a complement to this generation portfolio, particularly to address timing mismatches between solar generation and peak demand.

Generation growth in FY26

AGEL reported generating 38 billion units of electricity during FY26. This was 34% higher than 28 billion units in the previous financial year, as per the company’s disclosure. The higher generation base strengthens the case for integrated storage, as more renewable output increases the need for balancing and peak shifting.

India’s grid-scale storage market: early but accelerating

The company’s remarks come at a time when India’s grid-scale battery storage ecosystem remains at a nascent stage. The article notes that projects are in various phases of commissioning and integration, even as policy support and tender activity increase. As electricity demand rises and renewable penetration grows, storage is expected to play a key role in balancing supply and managing peak loads. AGEL’s plan aligns with this transition from capacity addition to system reliability.

Related disclosures and broader group storage roadmap

Separate disclosures included references to Adani Group’s entry into Battery Energy Storage Systems (BESS) with a 1126 MW / 3530 MWh project that is set to be commissioned by March 2026. The project entails deployment of more than 700 BESS containers and was described as the largest BESS installation in India and among the world’s largest single-location deployments. The Adani Group also outlined plans to deploy an additional 15 GWh by March 2027 and a longer-term target of 50 GWh total over the next five years.

Key numbers at a glance

Market impact and why investors watch this shift

AGEL’s storage push is tied to a key market question in India’s renewables sector: reliability. Batteries can help convert variable renewable output into a firm, dispatchable product that matches peak demand periods. The disclosed PPA share indicates a preference for contracted, long-term offtake for most of the new storage capacity. And the focus on Khavda suggests a strategy of scaling storage where generation is also expanding, which can support operational integration.

Conclusion

AGEL’s plan to invest about Rs 15,000 crore to add over 10 GWh of battery storage this year signals a sharper pivot towards round-the-clock clean power delivery. The company is pairing storage with renewable generation at Khavda and building on an installed base expected to reach about 3 GWh shortly. With most of the planned storage backed by long-term PPAs, the expansion ties into the sector’s broader shift from capacity addition to system reliability as India’s energy transition accelerates.