CEA Proposes Incentives To Boost Local Manufacturing Of Key Battery Energy Storage Components

(MENAFN- KNN India) New Delhi, Jun 9 (KNN) The Central Electricity Authority (CEA) has proposed targeted incentives to promote local manufacturing of critical battery energy storage system (BESS) components, including battery management systems, liquid cooling systems, and storage containers.

The recommendations aim to support India's growing power demand while enhancing grid stability through increased domestic production capabilities in the energy storage sector.

The proposals emerged from a comprehensive workshop on renewable energy integration through energy storage systems conducted in New Delhi during May.

The workshop brought together representatives from the Ministry of New and Renewable Energy (MNRE), public sector undertakings (PSUs), power distribution companies, renewable energy developers, and energy storage system manufacturers.

The CEA has identified BESS as essential for improving system performance through enhanced renewable energy integration, reduced coal dependency, and minimised reliance on short-term market mechanisms.

The authority estimates that optimised generation and transmission systems incorporating battery storage could generate substantial savings over a ten-year period, supporting both economic and environmental objectives.

Current policy frameworks include a government scheme launched in 2023 with an allocation of Rs 3,760 crore to support utility-scale battery manufacturing for power storage and grid applications.

However, no dedicated scheme currently exists for battery components, creating continued dependence on Chinese suppliers for critical system elements.

"Provide targeted incentives for local production of critical components such as BMS, fire protection, liquid cooling systems, and BESS containers," the CEA recommended.

The economic viability of BESS has improved significantly due to declining battery prices, leading to increased adoption across the country.

The CEA has mandated minimum two-hour storage facilities for all new grid-connected solar power projects, reflecting the growing integration of storage requirements in renewable energy development.

The authority is developing comprehensive regulations covering construction standards, connectivity requirements, and safety protocols for BESS.

The CEA has also recommended establishing a national testing and certification laboratory for these systems to ensure compliance with standards and enhance the credibility of domestic installations.

(KNN Bureau)

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