As India Races To Adopt Clean Energy, Homegrown Tech Lags Behind

Union Minister of State for Power, Shripad Naik, recently informed the Rajya Sabha that nine BESS projects are operational in the country. These are Tata Power in Delhi, Dollygunj-Attam Pahad in Andaman, Modhera Sun Temple and Kutch KLTPS in Gujarat, Kavaratti in Lakshadweep, Rajnandgaon in Chhattisgarh, SECI in Karnataka, and tariff-based BESS in Delhi.

The core components of BESS — battery cells and battery management systems — are largely dependent on foreign technology. Efforts are underway to develop indigenous technologies, but clear breakthroughs are still awaited.

No Guidelines Or Policy Issued

So far, the Central Electricity Authority (CEA) has not issued any official guidelines or policy regarding BESS tariffs, technical parameters, or performance standards. However, in 2025, the CEA released a draft regulation on safety, which includes specific recommendations for BESS systems.

The average power sale rates in 2023-24 by source were Rs 4.52 per unit for coal, Rs 3.27 per unit for hydroelectricity, and Rs 3.82 per unit for nuclear. Meanwhile, the estimated generation costs for new plants are Rs 2.50-Rs 3 for solar, Rs 3-Rs 4 for wind, Rs 5-Rs 6 for coal and hydroelectricity, and Rs 6-Rs 7 for nuclear.

BESS In Development Phase In India

According to a senior official in the Gujarat Energy Department, BESS is still in the development phase in India. However, recently discovered tariffs are showing promising signs. The state government is now moving forward to strengthen local manufacturing, technology transfer, and regulatory frameworks to meet daily energy demands and solve grid stability and renewable integration challenges.

Another top official in the Energy Department emphasised the importance of technological self-reliance for the future of renewable energy. As the global energy revolution accelerates, developing indigenous technology is crucial for India — not just for economic growth, but also for employment and environmental sustainability.

Only through collaborative efforts between the government, research institutions, industries, and local communities can this challenge be transformed into an opportunity, he said.

Hurdles To BESS Success In India

• Weak cooperation between universities and industries delays technology transfer
• Insufficient budget allocation for R&D in renewable energy
• Inadequate training for local technicians and engineers in new technologies
• Dependence on imports for solar panels, batteries, inverters, and wind turbines
• Lack of special grants or policy frameworks from the government to boost technology development
• Though PLI schemes exist for solar manufacturing, their results are yet to scale up significantly

Enabling BESS: Govt's Role Ahead

• Allocate special grants to IITs, NITs, and private institutions for research in RE technologies
• Set up innovation hubs and energy technology coordination centres
• Support local startups through venture capital, subsidies, and pilot project assistance
• Introduce renewable energy courses in ITIs and polytechnic institutes
• Provide training for MSMEs to manufacture energy equipment
• Sign MoUs with foreign firms for technology sharing or introduce similar models
• Revise the customs duty framework to promote domestic manufacturing over imports
• Develop affordable and locally suitable technologies
• Implement practical solutions with the help of NGOs, panchayats, and startups

Here are the state-wise tariffs discovered for BESS in bids concluded in FY 2025-26, for a contract period of 12 years, with viability gap funding (VGF) support of Rs 27 lakh/MWh: