Welcome to the new Energy Central — same great community, now with a smoother experience. To login, use your Energy Central email and reset your password.

Battery Energy Storage Systems (BESS): The Future of Energy Storage in India (2025 Perspective)

As India progresses towards a greener and more sustainable energy future, Battery Energy Storage Systems (BESS) are emerging as a critical solution for energy storage, grid stability, and renewable energy integration. This article delves into the various aspects of BESS, including technologies, maintenance, safety, costing, and India’s energy policies.

Battery Technologies in BESS

1. Lithium-Ion (Li-ion):

Most widely used technology due to its high energy density, efficiency (~90-95%), and long cycle life (3,000-5,000 cycles).

Cost: ₹15,000-₹20,000 per kWh (2025 estimate).

2. Sodium-Ion Batteries:

Emerging alternative to Li-ion, leveraging abundant sodium resources.

Cost: Expected to reduce to ₹10,000-₹12,000 per kWh by 2025.

3. Flow Batteries:

Suitable for large-scale storage with lower degradation.

Cost: ₹25,000-₹30,000 per kWh but expected to decrease with advancements.

4. Lead-Acid Batteries:

Traditional technology with lower costs but shorter life span.

Cost: ₹6,000-₹8,000 per kWh.

Maintenance of BESS

Routine Maintenance:

Regular monitoring of charge/discharge cycles and temperature management.

Cost: ₹500-₹1,000 per kWh annually.


Predictive Maintenance:

Use of AI-based diagnostics for early fault detection, reducing downtime.


Recycling and Disposal:

Lithium-ion recycling expected to grow with Indian policies focusing on circular economy.

Safety Standards for BESS

1. Thermal Management Systems (TMS):

Ensures cells operate within safe temperature ranges.

2. Fire and Explosion Risk Mitigation:

Compliance with UL 9540A, IEC 62933, and BIS standards in India.

3. Emergency Response Plans:

Training for handling thermal runaway events.

4. Cybersecurity:

For grid-connected BESS, robust protocols to prevent hacking are mandatory.

Costing and Financial Viability

Component Costs (2025 estimates):

Battery Cells: ₹8,000-₹10,000 per kWh.

Battery Management Systems (BMS): ₹1,500-₹2,000 per kWh.

Inverters: ₹2,000-₹2,500 per kW.

Thermal Management: ₹1,000-₹1,500 per kWh.


Overall System Cost:

Standalone BESS: ₹25,000-₹30,000 per kWh.

Grid-Connected BESS: ₹18,000-₹22,000 per kWh.


Payback Period:

8-12 years for most BESS installations.

Energy Markets and VGF

Energy Arbitrage:

BESS enables buying electricity during low-demand hours and selling during peak hours, creating significant revenue opportunities.

Expected arbitrage potential in India: ₹2.5-₹3 per kWh by 2025.

Viability Gap Funding (VGF):

The Indian government provides subsidies of 20-40% for large-scale BESS projects under renewable energy schemes.

Standalone vs. Grid-Connected BESS

1. Standalone Systems:

Used in remote areas for microgrids and critical infrastructure.

Costlier due to added resilience features.

2. Grid-Connected Systems:

Balances load fluctuations and supports renewable energy integration.

Integral to India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030.

India Perspective: 2025

Import Dependency:

80% of lithium-ion cells are imported, mainly from China, increasing vulnerability.

Government initiatives like PLI schemes are promoting domestic manufacturing.


GST and Custom Duty:

GST on batteries: 18%.

Custom duty on imported batteries: 20-25%.


Market Size:

India’s BESS market is expected to reach ₹50,000 crore by 2025.

 

Challenges and Opportunities

Challenges:

High upfront cost.

Limited domestic manufacturing.

Recycling and disposal infrastructure.


Opportunities:

Strong policy push under National Storage Mission.

Green hydrogen and EV integration with BESS.

Development of ancillary services like frequency regulation.

Conclusion

BESS is not just an energy storage solution; it is the backbone of India’s renewable energy ambitions. With advancements in technology, strong government policies, and a growing energy market, BESS will play a pivotal role in ensuring a sustainable and resilient energy future for India.

India is on the brink of an energy revolution—be part of it. Embrace BESS for a cleaner, greener tomorrow!