Pace Digitek Advances BESS Expansion, Targets 10 GWh Manufacturing Capacity by FY2027

Pace Digitek, through its subsidiary Lineage Power, has announced progress in its Battery Energy Storage System (BESS) manufacturing expansion programme, reinforcing its strategy of building a scaled, integrated and execution-led energy storage platform. 

As part of its ongoing expansion roadmap, the Company has received key manufacturing equipment for the next phase of capacity addition. Installation, integration and commissioning activities for the additional 2.5 GWh manufacturing line are currently in advanced stages and are expected to be completed in July 2026. Upon commissioning, total installed manufacturing capacity is expected to increase from 2.5 GWh to 5 GWh. 

Building on this expansion, the Company has also progressed the next phase of growth towards 10 GWh manufacturing capacity. Infrastructure development and facility preparation activities have been substantially completed, while orders for the additional production lines have already been placed. The next 5 GWh capacity expansion is targeted to become operational during Q3 FY2027, taking total installed BESS manufacturing capacity to 10 GWh. 

Further, strengthening its integrated manufacturing strategy, Lineage Power is also developing a dedicated container fabrication facility, which is expected to become operational during Q2 FY2027. The facility will support in-house fabrication of BESS containers, enhancing backward integration, supply chain control, manufacturing flexibility and execution efficiency while supporting timely delivery of large-scale energy storage projects. 

Our manufacturing expansion is aligned with the Company's growing executable order book, project pipeline and long-term manufacturing requirements. Supported by an executable order book of INR 1,13,379 million and a 5.32 GWh executable energy pipeline, the Company has strong business visibility.

The planned scale-up is expected to strengthen execution readiness, support growing demand across energy storage applications, increase manufacturing-led revenue contribution and improve operating leverage through scale and integration. 

Commenting on the development, Venugopal Rao Maddisetty, Chairman and Managing Director, Pace Digitek, said, “We have been expanding our manufacturing platform in line with growing execution visibility, a strengthening order book and sustained demand across the energy storage market. This capacity expansion enhances our ability to execute larger projects while increasing the contribution of manufacturing-led revenues to our business. As production scales and backward integration initiatives including in-house container fabrication become operational, we expect to improve supply chain resilience, enhance operational efficiency and benefit from stronger operating leverage.”

He further added, “The additional 2.5 GWh capacity is nearing commissioning, while the next phase of expansion towards 10 GWh is already underway. Supported by a robust order pipeline, these investments strengthen our ability to serve utility-scale, grid-scale and commercial and industrial energy storage projects with greater speed, reliability and scale. 

Our focus is on building a scalable and integrated energy storage platform that combines manufacturing, system integration and project execution capabilities. This approach not only diversifies our revenue streams but also strengthens execution readiness and positions us to capture the long-term opportunities arising from India's energy transition."