REconnect Lucknow: Industry Leaders Push for Battery Storage, Local Manufacturing and Policy Reforms

As India accelerates its shift toward renewable energy, Uttar Pradesh is positioning itself as a key player in the transition, with battery storage emerging as a critical component. Industry experts gathered at the third edition of the REconnect Summit, organised by Energetica India magazine, to discuss the opportunities and hurdles in off-grid and solar storage solutions in the state.

In its Session 3, titled ‘Off-Grid and Solar Storage in Uttar Pradesh', the panel examined issues such as ensuring reliable power supply through battery storage, cost trends and financial feasibility of storage deployment, net metering and off-grid solar regulations, the role of government and DISCOMs in expanding solar energy to remote areas, and storage technologies.

The panel featured Shubhra Thakur, India Director at the Long Duration Energy Storage Council (LDES Council); Gaurav Kochar, Manager Sales at FIMER India; Arvind Jain, Chief Operating Officer of Ornate Solar; Akash Kaushik, Director of GoodEnough Energy; and Kumar Abhishek, Sales Head-North at POM Systems & Services.

Thakur opened the discussion by posing a key question on the challenges in deploying large-scale battery storage for both grid and off-grid applications. Responding to this, Kochar pointed to the volatile availability of lithium-ion batteries over the past year and a half, which has made project execution uncertain.

"The biggest challenge in battery storage deployment over the last one or one and a half years has been the availability and pricing of lithium-ion batteries. Prices were previously in the three-figure dollar range but have since dropped drastically. Every time an EPC or developer approaches us for a project, we find ourselves waiting, either for stable prices or new technology updates," said Kochar.

He further explained that rapid technological advancements in battery sizes and storage container designs also cause delays in project execution. "We often have to wait because battery banks and container specifications change quickly, leading to project delays," he added.

Despite these hurdles, Kochar highlighted FIMER India’s successful deployment of large-scale battery projects, including installations at the Modhera Sun Temple in Gujarat and Tata Power’s installation in Chhattisgarh.

Further, Jain stressed the importance of stronger government support in research and development (R&D) and local manufacturing, highlighting India’s dependency on Chinese battery imports as a major challenge.

"The government must take the lead in setting up R&D programmes for battery storage. At Ornate Solar, we are the only Indian solar and battery company with a DSIR-approved lab for innovation," Jain stated.

He further emphasised the absence of policy support for Building Integrated Photovoltaics (BIPV), a technology that allows solar panels to be seamlessly integrated into building facades.

"If India wants to achieve net-zero energy buildings, every structure must generate its own electricity. Right now, there are no specific BIPV policies, but we are actively engaging with MNRE and SPA to develop regulations," he added.

Jain also underscored the importance of domestic battery production under the Make in India initiative, stating that while India has sufficient module manufacturing capacity, cell production lines still rely on China, making the country vulnerable to supply chain disruptions.

"Manufacturing battery cells and components within India will reduce costs and improve supply stability," he explained.

Commenting on the global lithium-ion battery market, Kaushik stated that a temporary oversupply in China has led to reduced prices.

"Battery storage has existed for decades, but it was never cost-effective. In the last year, prices have dropped sharply due to an oversupply in China, where manufacturers overestimated the demand for electric vehicles (EVs)," Kaushik explained.

He noted that China ramped up lithium processing and battery production, anticipating massive EV adoption. However, as EV penetration remained lower than expected, a battery surplus flooded the market, leading to falling prices.

"Today, we see around 50 to 60 battery companies in China shutting down, while others are struggling with financial losses. However, this is a temporary phase, and prices will climb back up as global demand stabilises," Kaushik warned.

Kaushik also highlighted Levelised Cost of Storage (LCOS) as a key factor in making battery storage cost-competitive with conventional power sources.

"A year ago, LCOS was INR 10 per unit, making battery storage financially unviable. Today, it has dropped to INR 3 per unit, which is comparable to or even lower than thermal power costs," he explained.

However, he cautioned that maintaining a low LCOS depends on improving battery longevity and thermal management.

"A battery life cycle of 10,000 cycles, with one cycle per day, translates to 25 years of operation. If we can sustain these life cycles, battery storage will remain a financially viable solution," Kaushik stated.

The discussion moved to regulatory challenges related to Round-the-Clock (RTC) power and grid stability.

"When we talk about RTC power, it is important to consider India's regulatory landscape," said Kochhar, highlighting the role of the Central Electricity Authority (CEA).

"Regulations are a major concern for the Central Electricity Authority (CEA), and when implemented, they pose challenges for developers, EPCs, manufacturers, and procurement teams. The 2022 CEA guidelines remain in draft form. However, DISCOMS in states like Rajasthan, Madhya Pradesh, and Uttar Pradesh are already considering these guidelines, requiring compliance in various energy sectors, including solar. Ensuring grid stability remains a crucial issue in the broader context of global power management," he noted.

"The challenge lies in integrating multiple energy sources viz. battery with solar, battery with solar and wind, or even thermal with solar," he added.

Discussing off-grid battery deployment, Kaushik advocated for community-based microgrid solutions over individual off-grid installations.

"Rather than distributing small, isolated off-grid systems, we should focus on community-based microgrids. A 500-kilowatt system for a village or a 1-megawatt system for a small town could provide sustainable electrification," Kaushik explained.

He also pointed out that India wastes nearly 20 percent of its renewable energy production due to grid limitations and lack of storage solutions.

"We must store excess energy when generation is high and use it later. This requires both financial incentives and policy reforms," he stressed.

Abhishek discussed the challenges of off-grid battery deployment in Uttar Pradesh, particularly in government-backed tenders.

"We are supplying 100 kW off-grid inverters in Uttar Pradesh, but government tenders only specify a backup duration of 30 to 40 minutes without mandating lithium-ion technology," Abhishek noted.

As a result, EPC developers often opt for cheaper lead-acid or tubular batteries, limiting lithium-ion battery adoption.

"The price gap between lithium-ion and tubular batteries remains a major challenge. The government must step in and offer incentives, either through subsidies, annual incentives, or one-time grants, to encourage lithium iron phosphate (LFP) battery adoption for off-grid solutions," he suggested.

While commenting on net metering in Uttar Pradesh, Kaushik stated that the state is working towards revising its net metering policy.

The panel concluded with a unanimous call for stronger collaboration between government, industry, and research institutions. Experts agreed that battery storage adoption in Uttar Pradesh is growing, but widespread implementation requires policy support, cost reductions, and clear regulatory frameworks.

The panellists also stressed the need for policies focusing on net-zero goals, hybrid inverters, and domestic manufacturing. They highlighted India's potential to locally produce renewable energy components, reducing import dependency and strengthening the domestic energy sector.