This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Fluence, a leading global energy storage technology and services company, has set its sights on the burgeoning Indian energy storage market. The company recently announced plans to localize its products in India by the end of 2024, with a longer-term goal of establishing battery manufacturing capabilities in the country. This move reflects Fluence’s recognition of India’s immense potential in the energy storage sector, driven by the rapid adoption of renewable energy and the phasing out of coal-fired power plants.
Formed as a joint venture between energy giants AES and Siemens, Fluence brings a wealth of experience and expertise in grid-scale energy storage systems. Their solutions focus on enhancing grid stability, integrating renewable energy, and optimizing power management. ReNew Power, a significant player in India’s renewable energy sector, complements Fluence’s capabilities by providing local market knowledge and project execution expertise.
India’s ambitious clean energy targets, particularly its goal of achieving 500 GW of renewable energy capacity by 2030, create a significant and growing demand for energy storage solutions. These solutions are crucial for managing the variability of renewable power sources and ensuring grid stability. Recognizing this need, the Indian government has launched initiatives like the Phased Manufacturing Programme (PMP) to incentivize domestic battery manufacturing and the National Programme on Storage (NPS) to create a supportive regulatory environment for energy storage.
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While Fluence’s entry into the Indian market is timely, it’s not without challenges. Establishing a robust domestic supply chain, particularly for battery manufacturing, presents a significant hurdle. However, with a long-term focus on complete indigenization, Fluence and its partners are poised to navigate these complexities. India’s energy storage market is projected to grow exponentially in the coming years, fueled by falling battery prices and favorable government policies.
Fluence aims to localize half of its product components in India by the end of 2024, signifying a phased step toward indigenization. This move aligns with Indian government initiatives aimed at promoting domestic manufacturing and reducing reliance on imports.
India’s energy storage sector is rapidly expanding, attracting investments and collaborations. Partnerships like the one between Fluence and ReNew Power underscore the importance of strategic alliances in successfully navigating this dynamic market. The government’s focus on modernizing grid infrastructure and developing a clear regulatory framework will further pave the way for the widespread adoption of energy storage solutions.
As India continues its transition to cleaner energy sources, energy storage will play a decisive role. Companies like Fluence, with their expertise and commitment to the Indian market, are well-positioned to shape the future of India’s energy landscape, ensuring a more resilient, sustainable, and efficient power grid.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
