Battery Storage Gains Momentum in Middle East as L&T Secures Major Order for Three Projects

Mumbai – Battery storage is playing an increasingly important role in the Middle East as a building block for supply security and the expansion of renewable energy. The renewables division of Indian conglomerate Larsen & Toubro (L&T) has secured a major order in this growing market to develop several battery storage projects in the region.

Global battery storage additions grew faster in 2025 than any other power technology, according to the International Energy Agency (IEA). Around 108 gigawatts of new capacity were added worldwide, a 40 percent increase over the previous year. Storage duration is also trending longer, with systems increasingly designed for four hours or more, the IEA said.

L&T to Develop Three BESS Projects with 6 Gigawatt-Hours of Capacity

Under the order, L&T's renewables division will develop three battery energy storage system (BESS) projects with a combined storage capacity of 6 gigawatt-hours. Each facility is designed for a four-hour storage duration, equivalent to a combined output of approximately 1.5 gigawatts. L&T did not disclose the target country or the client, referring only to a renowned customer in the Middle East.

The storage systems are intended to absorb surplus renewable electricity during periods of low demand and release it during peak periods, helping to stabilize the grid and facilitate the integration of renewable energy. The scope of the order also includes grid connection infrastructure such as collector substations and underground cables. The battery systems are to be equipped with liquid cooling, which L&T said is intended to enable higher power density, improved safety and a longer operational lifespan.

Middle East Storage Additions More Than Tripled in 2025

Under L&T's own order classification system, the contract is designated a "Major Order," a category covering orders ranging from 5,000 crore to 10,000 crore rupees, equivalent to approximately EUR 450 million to EUR 900 million (exchange rate as of August 25, 2026). L&T did not disclose an exact contract value.

The order comes in a rapidly growing market where storage deployment is accelerating sharply. According to the IEA, battery storage additions in the Middle East exceeded 3 gigawatts in 2025, more than triple the previous year's figure. The growth has been driven almost entirely by Saudi Arabia, where storage is playing an increasingly important role in grid flexibility.

The region also compares favorably in terms of time to commissioning, the IEA noted. While storage projects in Europe, the United States and Japan typically take two to two-and-a-half years to reach commissioning, timelines in China and parts of the Middle East are shorter.

Source: IWR Online, 26 Aug 2026