Newsletter
India is considering mandatory localisation for Battery Energy Storage Systems (BESS) used in wind, solar, and standalone storage projects connected to the grid.
In simple terms, India wants batteries used to store solar and wind power to be made partly in India instead of being fully imported from abroad.
Breaking it down: The Centre is considering a rule to require locally made parts in battery storage systems used for renewable power.
The proposal may require at least 50% local content in non-cell components such as battery management systems, inverters, containers, and energy management systems. Battery cells would be excluded for now.
The power ministry has already held consultations with PSU players like NTPC and SECI, and private firms such as JSW Energy, Engie, and Avaada. The government is also exploring an approved vendor list, similar to the solar sector’s ALMM framework.
The why: two reasons stand out. Cutting import dependence, especially on China, and reducing security risks linked to foreign-made equipment in critical power infrastructure.
Moreover, India is targeting 47 GW of BESS capacity by 2032, with an estimated investment of ₹3.5 trillion. These systems are crucial because solar and wind don’t generate power round the clock. Currently, non-cell components make up around 35% of total BESS costs, and most of this is imported.
Big theme: India’s battery storage push is clearly accelerating. In 2025 alone, tenders jumped sharply, with over 100 GWh of projects moving into execution, compared to much lower levels in previous years.
This surge explains why the government is now pushing localisation. As battery storage scales up fast, India wants control over who builds the hardware powering its grid, instead of relying heavily on China.
