Que: How have you leveraged Bangalore's tech ecosystem to shape the strategic direction of Fluence's Global Innovation Center (GIC), and what innovations in energy storage technology have emerged from this hub?

Ans: Fluence’s Global Innovation Center (GIC) in Bangalore is strategically positioned as a core pillar of the global organization, driving innovation and excellence. It draws on India’s diverse talent pool, with over 350 team members from across the country, making it our largest global site. The GIC supports more than 70 of 120 global teams, enabling seamless collaboration to solve challenges and deliver integrated solutions.

Innovation is at the heart of everything we do at the GIC. Our teams are focused on advancing groundbreaking solutions that align with global energy storage demands. Our Digital Services Center (DSC) applies extensive data from our installed base to generate actionable insights that shape product development, enabling us to anticipate customer needs with precision. Additionally, we’re expanding Fluence Mosaic, our AI-driven software, which empowers renewable energy asset owners to optimize returns by managing complex decisions, forecasting prices, and enhancing operational efficiency.

Que: In your experience, what are the key challenges and opportunities in developing cutting-edge energy storage solutions at Fluence’s GIC?

Ans: Speed and competitiveness are two core strategic imperatives driving Fluence’s hypergrowth, and the GIC in India is designed to enable both. Our teams in India work deeply embedded as part of global functions, collaborating closely with colleagues worldwide to accelerate product development cycles and reduce project implementation timelines, allowing us to deliver faster, customer-focused solutions.

On the competitiveness front, the GIC plays a critical role in localizing components, strengthening supply chain resilience, and optimizing costs, ensuring we deliver affordable, high-quality solutions. Beyond this, the center drives innovation by advancing patents, introducing cutting-edge technologies, and enabling faster development of solutions aligned with customer needs. These efforts collectively position the GIC as a hub of transformative opportunities in energy storage.

Que: Fluence has executed energy storage projects in various regions such as the USA, Australia, and Europe. What are some of the key learnings from these regions, and how have they influenced Fluence’s strategy in India?

Ans: Two critical learnings from our global experience have significantly influenced our strategy in India. First, we’ve observed that customers worldwide seek rapid implementation to quickly realize their return on investment. This insight has driven us to establish India as a strategic accelerator and value generator, positioning the GIC to enable faster project delivery.

Second, we’ve learned that customer needs are highly diverse across different markets, requiring tailored solutions to address unique demands effectively. By having teams that support different countries work together at the GIC, we can cross-leverage learnings and bring better solutions to our customers. This collaborative approach ensures we adapt to specific market requirements while driving innovation and delivering versatile, customer-centric solutions globally.

Que: How have policy frameworks in mature markets like the USA contributed to the success of energy storage projects? What lessons can Indian policymakers learn from these regions?

Ans: In the US, the 2022 Inflation Reduction Act (IRA) boosted supply chain security with incentives like the 10% Investment Tax Credit (ITC) bonus for using domestic components. Fluence’s Gridstack Pro, launched in 2023, is designed to qualify for this bonus, showcasing how such policies drive innovation and local manufacturing.

India’s policymakers have taken notable steps to similarly bolster the energy storage sector. Through Viability Gap Funding (VGF), the Indian government is covering up to 40% of capital costs to support the development of Battery Energy Storage System (BESS) with a capacity of 4,000 MWh. Additionally, customs duty exemptions on capital goods for lithium-ion cell production and 100% Foreign Direct Investment (FDI) in renewable energy projects have attracted substantial international interest. These initiatives reflect India’s dedication to building a resilient and efficient energy storage supply chain while advancing its renewable energy ambitions.

Que: How important is sustainability in the manufacturing process for Fluence? What strategies is the company implementing to ensure that the manufacturing process aligns with circular economy principles?

Ans: Sustainability is fundamental to Fluence’s mission to transform the way we power the world and achieve a green, net-zero future. This commitment requires attention to every stage of our supply chain—from sourcing sustainable materials and ensuring responsible labour practices, to innovating around end-of-life management. We’re actively investing in research and partnerships to drive recycling initiatives and bring our energy storage products into a true circular economy. Achieving this in utility-scale energy storage means collaborating across our entire value chain, from manufacturers to recyclers, to identify and implement best practices.

We’re developing a Fluence Circular Economy Framework that integrates data monitoring for transparency and accountability in our operations. Additionally, our Material Recycling Framework, with partnerships in North America, Europe, and Australia, ensures responsible handling and recycling of batteries, laying the groundwork for a truly sustainable, circular supply chain. Details on the Fluence Circular Economy Framework are available in our 2023 Sustainability Report.

Que: In your view, what role will BESS play in achieving India’s 2030 renewable energy goals?

Ans: Battery Energy Storage Systems (BESS) are critical to India’s renewable energy targets for 2030. They’re easier to install, less capital-intensive, and offer quicker returns than alternatives like pumped hydro. Their compactness makes them less space-intensive, and they come with the added benefits of quick response times, high scalability, and adaptability. BESS also provide high efficiency and energy density, supporting seamless integration with renewables. Unlike other options, BESS are free from location constraints, allowing flexible deployment across a variety of environments, making them an ideal solution for renewable energy growth and grid stability.