(1/n)
🧵Detailed thread on Battery Energy Storage System (BESS)
A theme that will be Powering the Future
Courtesy: @rajendray presentation at Equity Excellence Mumbai Meet-up
🔁Do share/repost for wider reach
🧵Detailed thread on Battery Energy Storage System (BESS)
A theme that will be Powering the Future
Courtesy: @rajendray presentation at Equity Excellence Mumbai Meet-up
🔁Do share/repost for wider reach
(2/n)
What is BESS?
▪️A large-scale rechargeable battery system that stores energy from various sources like grid, solar, wind, generators etc
▪️Enables reliable, stable power delivery and renewable integration
▪️Acts as a buffer between intermittent energy supply and fluctuating demand
What is BESS?
▪️A large-scale rechargeable battery system that stores energy from various sources like grid, solar, wind, generators etc
▪️Enables reliable, stable power delivery and renewable integration
▪️Acts as a buffer between intermittent energy supply and fluctuating demand
(3/n)
Key Applications
▪️Load Balancing: Smooths supply-demand fluctuations
▪️Frequency Regulation: Stabilizes grid frequency
▪️Peak Shaving: Reduces expensive peak-time generation
▪️Emergency Backup: Provides backup during outages
▪️Renewable Integration: Stores surplus renewable energy
Key Applications
▪️Load Balancing: Smooths supply-demand fluctuations
▪️Frequency Regulation: Stabilizes grid frequency
▪️Peak Shaving: Reduces expensive peak-time generation
▪️Emergency Backup: Provides backup during outages
▪️Renewable Integration: Stores surplus renewable energy
(4/n)
Key Components
▪️Battery Modules: mainly Lithium-ion LFP) used for energy storage
▪️Battery Management System (BMS): •Ensures cell safety, monitors temperature and voltage
▪️Inverter: Converts DC power from batteries to AC power
▪️Energy Management System (EMS): uses AI/IoT to optimize charge-discharge cycles and grid sync
Key Components
▪️Battery Modules: mainly Lithium-ion LFP) used for energy storage
▪️Battery Management System (BMS): •Ensures cell safety, monitors temperature and voltage
▪️Inverter: Converts DC power from batteries to AC power
▪️Energy Management System (EMS): uses AI/IoT to optimize charge-discharge cycles and grid sync
(5/n)
Why BESS is Critical
1⃣Enables Renewable Energy Integration
▪️Ensures consistent power supply from renewables
▪️Enhances the reliability of renewable projects
▪️Allows for higher grid penetration of renewables
2⃣Provides Backup Power
BESS acts as a critical safety net during grid outages or blackouts by
▪️Delivering immediate power backup to homes, industries, and essential services
▪️Supporting disaster recovery and grid resiliency
▪️Replacing or supplementing traditional diesel generators, especially in remote or off-grid areas
3⃣Manages Peak Demand
Energy demand fluctuates during the day. BESS addresses this by:
▪️Charging during off-peak periods
▪️Discharging during peak times to reduce load on the grid
▪️Helping utilities avoid expensive peaking power plants
▪️Reducing peak demand charges for commercial and industrial consumers
4⃣Reduces Energy Costs
▪️Lower electricity bills for end-users
▪️Reduce operating costs for businesses
▪️Improves the economic viability of solar and wind projects
5⃣Lowers Carbon Emissions
▪️Decreased greenhouse gas emissions
▪️Replacement of carbon-intensive peaker plants
▪️Advancement toward net-zero targets and sustainability goals
6⃣Improves Grid Stability
▪️Provides frequency and voltage regulation services
▪️Balances short-term supply-demand mismatches
▪️Reduces transmission congestion and grid bottlenecks
▪️Supports ancillary services for grid operators
Why BESS is Critical
1⃣Enables Renewable Energy Integration
▪️Ensures consistent power supply from renewables
▪️Enhances the reliability of renewable projects
▪️Allows for higher grid penetration of renewables
2⃣Provides Backup Power
BESS acts as a critical safety net during grid outages or blackouts by
▪️Delivering immediate power backup to homes, industries, and essential services
▪️Supporting disaster recovery and grid resiliency
▪️Replacing or supplementing traditional diesel generators, especially in remote or off-grid areas
3⃣Manages Peak Demand
Energy demand fluctuates during the day. BESS addresses this by:
▪️Charging during off-peak periods
▪️Discharging during peak times to reduce load on the grid
▪️Helping utilities avoid expensive peaking power plants
▪️Reducing peak demand charges for commercial and industrial consumers
4⃣Reduces Energy Costs
▪️Lower electricity bills for end-users
▪️Reduce operating costs for businesses
▪️Improves the economic viability of solar and wind projects
5⃣Lowers Carbon Emissions
▪️Decreased greenhouse gas emissions
▪️Replacement of carbon-intensive peaker plants
▪️Advancement toward net-zero targets and sustainability goals
6⃣Improves Grid Stability
▪️Provides frequency and voltage regulation services
▪️Balances short-term supply-demand mismatches
▪️Reduces transmission congestion and grid bottlenecks
▪️Supports ancillary services for grid operators
(6/n)
India’s Vision & Government Policy
▪️Target: 500 GW non-fossil energy by 2030 driving need for large-scale storage
▪️Aligned with India’s Net Zero and Energy Independence Goals
Market Opportunity
▪️Central Electricity Authority (CEA) target for 42 GW by 2027-28 and 236 GW by 2032
▪️BESS = Critical Enabler for renewable reliability, grid stability, and energy security
2022 Guidelines
▪️BESS allowed as part of generation, transmission and distribution
India’s Vision & Government Policy
▪️Target: 500 GW non-fossil energy by 2030 driving need for large-scale storage
▪️Aligned with India’s Net Zero and Energy Independence Goals
Market Opportunity
▪️Central Electricity Authority (CEA) target for 42 GW by 2027-28 and 236 GW by 2032
▪️BESS = Critical Enabler for renewable reliability, grid stability, and energy security
2022 Guidelines
▪️BESS allowed as part of generation, transmission and distribution
(7/n)
Government Support - Viability Gap Funding (VGF)
▪️₹5,400 Cr Viability Gap Funding: Announced in June 2024
▪️VGF Usage: 30 GWh of new battery storage capacity - 25 GWhfor 15 states 5 GWh for NTPC Ltd by Dec 2026
▪️Tender Process: First round to be floated within 3 months , already started
▪️PLI Scheme: ₹18,100Cr outlay to support domestic battery production
▪️FDI: 100% FDI in renewable energy & storage sectors
Government Support - Viability Gap Funding (VGF)
▪️₹5,400 Cr Viability Gap Funding: Announced in June 2024
▪️VGF Usage: 30 GWh of new battery storage capacity - 25 GWhfor 15 states 5 GWh for NTPC Ltd by Dec 2026
▪️Tender Process: First round to be floated within 3 months , already started
▪️PLI Scheme: ₹18,100Cr outlay to support domestic battery production
▪️FDI: 100% FDI in renewable energy & storage sectors
(8/n)
BESS Value Chain
▪️Raw Material → Chemical → Cell & Pack Production → Application → Recycling
▪️Ecosystem includes inverters, charging, and grid-edge solutions
BESS Value Chain
▪️Raw Material → Chemical → Cell & Pack Production → Application → Recycling
▪️Ecosystem includes inverters, charging, and grid-edge solutions
(9/n)
Investment Watchlist - Key Players
Power Generation & Renewable: Tata Power, JSW Energy, Adani Green, NHPC, KPI Green, Sterling & Wilson, Acme Solar
Emerging/SMEs:
Advait Infratech: 1 GW BESS pipeline
Bondada Engineering: BESS project for Telangana GENCO
Himadri Specialty: Integrated lithium-ion material producer
Others: Prostarm, GP Eco, SMPL Infra, Oriana Power, Zodiac Energy
Investment Watchlist - Key Players
Power Generation & Renewable: Tata Power, JSW Energy, Adani Green, NHPC, KPI Green, Sterling & Wilson, Acme Solar
Emerging/SMEs:
Advait Infratech: 1 GW BESS pipeline
Bondada Engineering: BESS project for Telangana GENCO
Himadri Specialty: Integrated lithium-ion material producer
Others: Prostarm, GP Eco, SMPL Infra, Oriana Power, Zodiac Energy
(10/n)
Conclusion
Battery Energy Storage Systems are not just an energy solution - they are a strategic infrastructure investment. They enable cleaner, cheaper, and more resilient power systems while unlocking the full potential of renewable energy.
As countries like India target aggressive renewable energy goals, BESS will play a central role in future-ready grid modernization and decarbonization.
Strong government push and large market opportunity make BESS a promising investment theme
Conclusion
Battery Energy Storage Systems are not just an energy solution - they are a strategic infrastructure investment. They enable cleaner, cheaper, and more resilient power systems while unlocking the full potential of renewable energy.
As countries like India target aggressive renewable energy goals, BESS will play a central role in future-ready grid modernization and decarbonization.
Strong government push and large market opportunity make BESS a promising investment theme
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