IFC backs IndiGrid’s 180 MW battery storage project in Gujarat

The International Finance Corporation (IFC) and India Grid Trust (IndiGrid) have partnered to develop a 180 MW/360 MWh standalone battery energy storage system (BESS) project in Gujarat.

IFC has committed $55 million (Rs 4.6 billion approx.) in long-term financing to the project through listed non-convertible debentures. This includes $38.5 million from IFC’s account and $16.5 million in concessional finance from the Clean Technology Fund under the Climate Investment Funds framework. The investment was completed during Q1 of FY2025-26, which ended on June 30, 2025.

The project will be developed by IndiGrid 1 Limited and IndiGrid 2 Limited, special purpose vehicles of IndiGrid. Gujarat, the host state, has set a target to reach 100 GW of renewable energy capacity by 2030 and is a key location for energy storage infrastructure.

Beyond peak power support, the battery system will provide ancillary grid services such as frequency regulation and voltage support. These functions are essential for grid reliability as renewable penetration increases.

This project builds on an existing relationship between IFC and IndiGrid. In 2023, IFC considered investing up to $150 million in IndiGrid through similar instruments to support its broader renewable and storage portfolio expansion.