Home Grown BESS: The Only Viable Route to Power India’s Aatmanirbharata

For India, integrating next-generation BESS solutions is critical to achieving grid-scale and industrial-ready applications without interruptions.

November 20, 2025. By News Bureau

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Hiren Pravin Shah

Replus Engitech

BESS Solution

Atmanirbhar Bharat vision

Battery management systems (BMS)

Power conversion systems (PCS)

Viability Gap Funding (VGF)

Next-gen Global Innovations

As the world transitions to cleaner power, India’s industrial and economic ability will be determined on how the country is able to store energy. Power storage solutions are crucial to also further India's Atmanirbhar Bharat vision. While one may perceive batteries as vital tools within a car or home, a Battery Energy Storage Systems (BESS) is the very backbone of India's energy future. In fact, a homegrown BESS ecosystem tethers itself to imports, grids, and external dependencies to spur India’s renewable and electric-vehicle revolution.

Understanding Why BESS is Critical

BESS are advanced technologies that help smooth out power fluctuations, stabilise grids, and ensure renewable energy is efficiently put to use. At present, however, India is heavily dependent on imports for key BESS components with cells, cathodes, electrolytes, and advanced control systems. Over 85 percent of lithium-ion cells used in India’s energy storage projects and electric vehicles are imported, primarily from China, South Korea, and Japan. This reliance not only drains foreign exchange reserves but also exposes India’s clean energy ambitions to supply chain vulnerabilities and geopolitical risks.

India has aimed to achieve 500 GW of renewable energy capacity by 2030, but the success of this ambition is dependent on how effectively power is stored and transmitted. BESS bridges our gap between generation and consumption ensuring grid stability and industry transition to clean energy. Union Minister of State for Power, Shripad Naik, recently informed the Rajya Sabha that nine BESS projects are operational in the country meeting the current capacity. However, India needs to better this number in order to meet several targets.

Building BESS Components in India

BESS can be charged and discharged more frequently and are both flexible as well as efficient. They also have higher life- cycles to ensure long-term reliability. A BESS unit comprises multiple layers: cells, which are the core electrochemical units; modules and packs, which assemble cells into usable formats; battery management systems (BMS) for monitoring and control; and power conversion systems (PCS) that interface with the grid.

In order to meet the industry and BESS targets, the Union Cabinet recently announced a Viability Gap Funding (VGF) worth Rs 3,760 crore, or up to 40 per cent capital cost for private players to set up BESS manufacturing units. With less than five years to achieve the 2030 RE installed capacity targets, Indian manufacturers need to expedite deployment of smarter and swifter BESS solutions.

While there has been phenomenal ground-work in assembling battery packs, upstream ecosystem such as cell manufacturing and raw material processing yet remains nascent. Establishing Gigafactories for lithium-ion and other advanced chemistries (like sodium-ion and solid-state batteries) is crucial. The government’s Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) is a significant step forward, targeting 50 GWh of domestic capacity. But beyond policy, the private sector must accelerate investments in R&D, material localisation, and recycling infrastructure to reduce costs and dependence on imports.

India’s mineral resource base also holds promise. With the discovery of lithium reserves in Jammu & Kashmir and Rajasthan, there’s potential to create a vertically integrated domestic supply chain — from raw materials to finished BESS units. This integration can dramatically lower costs, create skilled jobs, and strengthen India’s position in the global clean energy market.

Next-gen Global Innovations

While globally, BESS technology has evolved at an unprecedented pace, one can also see innovations such as solid-state batteries, flow batteries, hybrid energy storage systems, and even cooling techniques deployed around the globe. While Indian manufacturers gear up to push the production limits, we also need to ensure reliable products that cater to the safety, and lifecycle efficiency of the product. For India, integrating next-generation BESS solutions is critical to achieving grid-scale and industrial-ready applications without interruptions.

To India, there is no option but to adopt international standards while nurturing indigenous design and engineering capabilities. This means investing in thermal management systems, AI-based predictive maintenance, and recycling frameworks that extend the lifespan and sustainability of BESS installations.

India’s Aatmanirbhar capability also lies in how effectively and quickly a value chain can be built for BESS — from solar farms and EV charging stations to industrial power backup and rural electrification. It not only decarbonises energy but also decentralises it, empowering communities and industries with stable, clean power. India’s energy future cannot be imported but has to be built as that would define India’s sovereignty in the clean energy era.

- Hiren Pravin Shah, CEO of REPLUS Engitech