LDES vs BESS explained: NTPC, Tata Power and other energy storage stocks in focus

As India moves ahead to its ‘net zero’ and clean energy goals, renewable energy plans and battery energy storage systems are gaining traction. Energy storage systems play a key role in building support for the power infrastructure of the country.

With the overall push towards renewable energy infrastructure, India needs energy storage or power grids to contain the energy generated from sources like solar, wind, and hydro, among other things.

The Battery Energy Storage Systems (BESS) and Long Duration Energy Storage (LDES) are the key energy infrastructure that is needed to store excess electricity and eventually use it whenever needed by the people over time.

Although being largely used for the sole purpose of storing energy, the two are uniquely different in their own ways based on the fundamental technology and utility functions. However, both are needed for India’s transition into a cleaner energy future.

What is BESS technology?

Battery Energy Storage Solutions (BESS) are storage infrastructure that uses a group of electrochemical batteries to store electrical energy produced by the renewable energy plants for people to access when in need, much like an inverter system.

The electrochemical batteries are combined and used to make a module, which comprises many individual batteries, and then turned into a battery pack, comprising many modules.

These BESS power banks, or energy reservoirs, are made up of multiple electrochemical battery packs, which are commonly made from lithium-ion or sodium-ion, and are equipped to store energy accessible on demand for a short period of time.

Data collected from Enel (Italy-based multinational electricity producer) suggests that renewable electric energy-producing companies store the power generated from solar or wind sources in these BESS hubs, which are built near the transmission grids or inside the power plants.

With the help of BESS energy storage grids, the companies can successfully cater to the power shortage needs, but the limitation is that the discharge duration of the same technology is faster, with 1-4 hours of power support.

How is LDES technology different?

Unlike BESS, the Long Duration Energy Storage (LDES) systems surpass standard lithium chemistry using mechanical, thermal, and electromagnetic systems and compressed air systems, which act as major support rather than an immediate power demand unit like their adjacent technology.

A BESS battery system works based on electrochemistry, but, for example, a CO₂-based LDES system will work on specialised electro-mechanical turbomachinery where the charging and discharging of the batteries happen by manipulating the element from vapour to liquid and vice versa.

US Department of Energy data showed that an advanced LDES system takes nearly 10 hours or more to discharge, which gives the companies more timeframes of downtime or disruption support, keeping the wind and solar energies in store.

Reports also suggest that a BESS system’s lifespan ranges anywhere around 10 years or more, while an LDES system has an average lifespan of 50 years of operations.

“While shorter-duration energy storage technologies like lithium-ion batteries can handle much of the intra-day variation, like shifting midday solar power generation into the evening hours, longer-duration options are required for periods of low wind or sun that span many days,” according to a US Department of Energy report.

With support from both the BESS and LDES technologies, India is expected to expand its renewable energy capabilities as it moves towards capacity expansion and transitioning to a clean energy future.

India’s renewable energy snapshot

With the central government’s key focus on renewable energy, Union Minister of New and Renewable Energy, Pralhad Joshi, in an official statement last month, said that India ranks third in renewable energy installed capacity among countries around the world.

Further citing data from the Renewable Energy Statistics 2026 report, Joshi said that India has been successful in achieving a total non-fossil capacity addition of 55.3 gigawatts (GW) during the financial year ended 2025-26.

With the energy capacity in focus, the investors will maintain their attention on the capabilities of the renewable energy stocks in India as the companies keep expanding their operations in newer and more developed technology, which gives access to energy at a lower operational cost.

A report from the Long Duration Energy Storage Council showed that India’s goal to have 500 GW of non-fossil fuel energy capacity by 2030 needs support from long-duration flexibility to avoid underutilisation and missed opportunities in energy storage.

The report further mentioned that India needs to explore pathways foraying into electrochemical, mechanical, thermal, and chemical storage of energy, taking examples from the UK, the US and Australia, among other world nations.

Latest media reports from Mint also highlighted that the Indian government is looking to launch a financial scheme to support the LDES technology in the country, as the focus of the nation is now towards storage capacity amid rising power demand in the market.

List of energy storage stocks in focus

The company’s stock has gained 6% in the past one month but has lost 3% in the last five market sessions. The company makes battery storage equipment and battery packs and is aligning itself with the BESS demand in the market.

The company’s stock has lost 4.6% in one month and 2.2% in the last five market sessions. Last year, Tata Power announced its plans to install 100 megawatts (MW) of BESS in Mumbai, catering to 8 lakh residential and commercial customers in the city during a time of need.

The power generation company’s stock has lost 1.38% more in one month and 0.53% in the past five market sessions. The company is planning to replace its DG set power units with BESS systems in the thermal power plants in a phased manner.

The company’s stock was up 3% in the past one month but has lost 2.6% in the last five trading sessions. The company is a lead-acid and lithium-ion battery maker, which is set to set up BESS plants as it aims to expand its business operations in the country.

So far in 2026, the stock has lost 16% YTD and is down 0.44% in one month and more than 1.48% in the last five trading sessions. HBL Engineering is now targeting BESS systems, as it already manufactures industrial-grade batteries and other electronic components.

However, the company is a major player in the energy storage sector as it builds and operates large-scale BESS projects in the country, with a sustained order book of projects lined up for execution.