The Central Electricity Authority (CEA) of India is urging the government to introduce incentives for domestic manufacturing of critical battery components, such as battery management systems and energy storage system containers. This move aims to enhance grid stability and reduce dependence on Chinese imports, as India strives to achieve its 500 GW non-fossil energy target by 2030. The CEA’s recommendation comes after a high-level workshop on renewable energy integration through energy storage systems, which highlighted the need for a dedicated incentive scheme for battery components.
Currently, India relies heavily on imports from China due to the lack of a dedicated incentive scheme. The CEA proposes setting up a national-level testing and certification laboratory for battery energy storage systems (BESS) to ensure compliance with safety and performance standards. This facility would enhance the credibility and global competitiveness of domestically manufactured systems.
The CEA also plans to roll out new regulations covering the construction, connectivity, and safety standards for BESS infrastructure. BESS installations have been shown to improve grid performance by integrating intermittent renewable sources, reducing dependence on coal-fired plants, and offering long-term cost savings. The Indian government had announced a scheme to support large-scale battery manufacturing in 2023, but there is still no policy support for key components.
The CEA warns that this gap could undermine India’s clean energy storage ambitions and calls for immediate intervention. The authority cites the recent drop in solar+BESS tariffs as evidence of improved cost-effectiveness and highlights the success of a battery-integrated solar project on Kavaratti Island in Lakshadweep. The project has significantly reduced reliance on diesel-based power and stabilized the grid during peak loads.
The CEA advocates for replicating such solar+BESS projects across India’s island territories and remote regions, arguing that battery-integrated renewables represent the future of sustainable power for the country. With the government’s target of achieving 500 GW of non-fossil energy by 2030, the CEA’s recommendations aim to support the growth of the renewable energy sector and reduce dependence on fossil fuels. By incentivizing domestic battery component production and establishing a BESS testing lab, India can enhance its grid stability, achieve its energy storage goals, and reduce its reliance on imports.