India is relaxing rules for states to approve and fund standalone battery-storage systems. There’s a rush to build those projects, and tariffs are going lower and lower.
Rajasthan set a “lowest tariff” record last week at Rs 1.77 lakh per megawatt per month, undercutting Andhra Pradesh. Maharashtra is now sending out feelers, so there may be an even lower figure soon.
It’s a situation that has played out in renewable energy before. Solar and wind projects were rapidly installed, but little was done to build local manufacturing muscle.
The current rush of activity in the battery-storage space is only leading to market distortion. With government funding and other incentives, it’s “almost a risk-free business”, as one executive told The Ken.
There’s also the matter of relying heavily on Chinese imports, which also happened when solar and wind energy projects were being built.
The result is an insecure supply chain for battery storage in India. The Ken editor Seema Singh has the details in the latest edition of Make India Competitive Again, as read by Brady Ng.
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