Battery Energy Storage in India: Geon’s Strategy, Localization, and Policy Outlook

1. What is Geon’s motivation for entering the Energy Storage Space, alongside EV battery pack manufacturing?

As worldwide demand for electrification grows, Geon’s planned expansion into the Energy Storage area complements our core competence in EV battery pack manufacturing. Our motivations are twofold:

1. Market Synergy and Diversification: Energy storage systems (ESS) and EV battery technologies share common technologies such as chemistry, thermal management, power electronics, and battery management. We establish operational synergies and diversify revenue streams beyond the automotive sector by leveraging our strengths across both verticals in stationary applications such as grid-scale storage, commercial & industrial (C&I), and residential.

2. Long-Term Value Creation: We understand that the energy transition encompasses not just mobility but also the production, storage, and consumption of energy. ESS makes it possible to integrate renewable energy, improves grid stability, and advances decarbonization objectives—areas in which Geon hopes to have a significant, long-term impact. Our goal of becoming a technology-driven enabler of sustainable energy ecosystems is in line with our entry into this market.

In the end, this action positions Geon as a provider of complete energy solutions in a fast changing global energy scene, rather than merely as a battery maker.

2. Can you tell us about your new BESS plant setup and your plans for Commercial and Industrial ESS?

Absolutely. Our new Battery Energy Storage System (BESS) plant represents a major milestone in Geon’s commitment to supporting the energy transition. Strategically located to optimize supply chain efficiency and regional market access, the facility is equipped with state-of-the-art automation, modular assembly lines, and stringent quality control systems. It’s designed for scalability, with an initial production capacity of 7 GWh annually, and room for expansion as market demand grows.

In terms of our Commercial and Industrial (C&I) ESS strategy, we’re focused on delivering modular, high-efficiency energy storage solutions tailored to the needs of commercial facilities, manufacturing plants, and infrastructure operators. Our systems are designed to address key challenges such as peak shaving, demand charge reduction, backup power, and renewable energy integration.

We see a significant opportunity in this segment—particularly in regions with high energy costs, grid instability, or aggressive decarbonization targets. Our roadmap includes both standardized product.

offerings, Made In India product and customizable turnkey solutions, supported by advanced energy management software and long-term service capabilities.

Ultimately, our goal is to empower C&I customers to take control of their energy usage, reduce their carbon footprint, and improve operational resilience—while positioning Geon as a trusted partner in their sustainability journey.

3. Indian companies are already seeing prices between $60 – $65 for a few hundred MWh procurement. How do you see the BESS prices moving? 

Yes, we’re closely tracking this trend. The $60–$65 per kWh range reflects the growing maturity of the BESS supply chain and increasing procurement volumes in India. However, it’s important to note that pricing at that level typically applies to large-scale utility or C&I projects with standardized configurations, limited customization, and aggressive commercial terms.

Looking ahead, we expect BESS prices to continue a gradual downward trajectory over the next 2–3 years, driven by several factors:

• Technology Advancements: Continued improvements in cell chemistry, higher energy densities, and better thermal management systems will enhance cost-efficiency.
• Economies of Scale: As global manufacturing capacity ramps up—especially in India under the PLI scheme and Make in India initiatives—domestic supply chains will reduce import dependency and logistics costs.
• Vertical Integration: Players like Geon who are active across battery pack manufacturing, system integration, and software optimization will have better control over cost structures and value delivery.

That said, price is only one part of the equation. The real differentiators in this market will be lifecycle performance, system reliability, warranty structures, and software intelligence. We believe customers will increasingly prioritize total cost of ownership (TCO) over upfront capex, and that’s where we are positioning ourselves—with a focus on long-term value and energy resilience.

4. How do you strategize to target 100s of MWh BESS projects being tendered and won by many companies?

Geon strategy to compete effectively in large-scale BESS projects—hundreds of MWh and beyond—is built on three core pillars: technology leadership, cost competitiveness, and execution reliability.

Technology Leadership:
We are investing in high-performance, modular BESS platforms with flexible configurations that can meet both grid-scale and C&I requirements. Our systems are engineered for scalability, fast deployment, and integration with advanced energy management software and remote monitoring tools. This gives us a technical edge in meeting the evolving grid support and renewable integration needs of utilities and large developers.

Cost Competitiveness:
With our integrated manufacturing of battery packs and upcoming localized BESS production, we’re achieving significant cost advantages across the value chain. We are also working closely with global cell suppliers and leveraging supply chain partnerships to ensure pricing remains competitive even at scale.

Execution Capability:
Winning large tenders is not just about submitting a low bid—it’s about proving that you can deliver on time, within budget, and with long-term reliability. We’ve built a strong EPC and project delivery ecosystem, and we back our systems with robust warranties, service networks, and performance guarantees. That gives confidence to both public and private sector clients.

We’re actively engaging with IPPs, DISCOMs, and large infrastructure players to co-develop projects and bring innovative commercial models like Energy-as-a-Service and performance-linked contracts to the table. In short, we’re not just bidding—we’re partnering to create long-term value.

5. As an organisation, how is Geon planning to compete with imported BESS?

At Geon, we see the growing influx of imported BESS solutions as both a challenge and an opportunity. Our strategy to compete is built around localization, customization, and long-term value creation—areas where imported systems often fall short.

• Deep Localization:
  We are setting up a fully integrated BESS manufacturing facility in India, which includes battery pack assembly, PCS integration, enclosures, and in-house software development. This drastically reduces logistics costs, lead times, and import duties—allowing us to offer highly competitive pricing without compromising on quality.
• Tailored Solutions for Indian Conditions:
  Unlike imported one-size-fits-all systems, Geon’s BESS solutions are engineered for Indian grid conditions, climate, and regulatory frameworks. Whether it’s thermal management suited for high ambient temperatures, or compliance with BIS and CEA norms, our systems are designed to perform reliably in local environments.
• After-Sales and Service Backbone:
  One of the biggest pain points with imported BESS is the lack of responsive service and long replacement cycles. Geon offers localized service support, remote monitoring, predictive maintenance, and faster turnaround for critical components—giving customers peace of mind and lower lifetime costs.

Policy Alignment and Strategic Partnerships:
We are aligned with government initiatives like “Make in India” and are actively engaging with stakeholders to drive domestic value creation. Our partnerships with Indian utilities, developers, and EPC players further strengthen our ecosystem and market access.

In essence, Geon competes not just on price, but on total cost of ownership, system reliability, and customer-centricity—which is where the real differentiation lies when compared to imported solutions.

6. Do you have any technology licensing arrangements with other companies to procure BESS manufacturing technology?

At Geon, our approach is a blend of strategic collaboration and in-house innovation. We recognize that energy storage is a fast-evolving technology domain, and staying ahead means leveraging both global expertise and local adaptability.

We do have selective technology licensing and partnership arrangements with reputed international players for certain core components—particularly in areas like battery management systems (BMS), power conversion systems (PCS), and thermal management. These partnerships allow us to accelerate our go-to-market while ensuring performance, safety, and global compliance.

At the same time, we’re investing heavily in in-house R&D to localize and optimize these technologies for Indian conditions—whether it’s adapting thermal systems for high ambient temperatures or customizing software for local grid integration and analytics.

Our goal is not to simply assemble imported designs, but to build a robust, scalable, and self-reliant BESS platform. Over time, we are moving towards greater technology ownership across critical layers of the system, which will be a key differentiator in cost, control, and long-term innovation.

In short, we see technology licensing as a stepping stone—not a dependency—in our journey toward becoming a globally competitive, end-to-end energy storage solutions provider.

7. Do you have plans to provide services that foreign companies may not be able to offer?

Absolutely. One of Geon’s core competitive advantages lies in our ability to provide localized, end-to-end services that many foreign companies simply cannot match—either due to geographic limitations, regulatory unfamiliarity, or lack of on-ground presence.

Here’s how we’re differentiating:

• End-to-End Lifecycle Support:
  We offer a complete solution—from system design and customization, to commissioning, remote monitoring, predictive maintenance, and lifecycle management. Our localized engineering and service teams ensure faster response times, better uptime, and lower operational risk for customers.
• Custom Solutions for Indian Market Needs:
  Unlike off-the-shelf imported systems, we tailor our BESS offerings to Indian grid conditions, regulatory requirements (CEA, BIS), and climatic challenges. This ensures better long-term performance and easier compliance.
• Flexible Commercial Models:
  We’re introducing innovative service offerings such as Energy Storage-as-a-Service (ESaaS), performance-linked contracts, and OPEX-based deployments—models that many foreign OEMs find difficult to implement due to limited operational flexibility in India.
• Deep Local Ecosystem Integration:
  From supply chain partnerships to workforce development and alignment with government incentives like “Make in India,” we’re deeply embedded in the local ecosystem. This allows us to reduce costs, ensure faster delivery, and support national goals for energy independence.
• Proximity and Accountability:
  For our customers, service quality and accountability matter just as much as technology. Our on-ground presence ensures face-to-face engagement, faster resolution of issues, and a true long-term partnership—not just transactional sales.

In summary, while global players may bring scale, Geon brings agility, localization, and long-term service reliability—which are critical to the success of energy storage deployments in India.

8. What are your localisation plans for BESS components? When do you see Indian companies manufacturing cells suitable for BESS?

Localization is a cornerstone of Geon’s strategy—not just for cost competitiveness, but for long-term energy security and value creation within India. Our localisation plans for BESS components are structured across three key phases:

• Immediate Term (Now–12 Months):
  We’ve already begun local assembly of battery packs, enclosures, thermal management systems, and integration of power conversion systems (PCS). We are sourcing structural components, wiring harnesses, and auxiliary systems domestically, which already accounts for a significant portion of the BESS BOM.
• Mid-Term (12–24 Months):
  We are actively working to localize key subsystems such as battery management systems (BMS), PCS through Indian technology partners, and energy management software platforms. We are also aligning with cell importers who are planning local cell assembly lines, which will gradually reduce dependence on fully imported cell modules.
• Long-Term (2–4 Years):
  The real game-changer will be cell manufacturing in India. While current domestic capabilities are limited, we expect to see commercially viable, BESS-suitable lithium-ion cell manufacturing start scaling by 2026–2027, especially under the Production Linked Incentive (PLI) scheme. The chemistry and format may initially focus on LFP and prismatic cells, which are well-suited for stationary applications.

We’re in active discussions with both Indian and international cell makers looking to set up in India, and as an integrator, we’re aligning our platform design to be chemistry-agnostic and modular—so we can seamlessly integrate domestically manufactured cells as soon as they’re available.

Ultimately, our goal is to achieve over 60–70% localisation in BESS systems over the next 3 years, contributing not only to cost and supply chain resilience, but also to India’s broader clean energy and manufacturing goals.

9. What capacity BESS are going to produce in 20 feet ISO container? How do you see it going higher in future?

We’re currently delivering BESS solutions with up to 5 MWh capacity in a standard 20-foot ISO container. This reflects significant progress in cell energy density, thermal management, and system integration — allowing us to pack more energy into the same footprint without compromising safety, performance, or compliance.

Looking ahead, we absolutely see potential for even higher capacities as battery chemistries evolve and packaging efficiencies improve. Technologies like solid-state and next-gen lithium-ion, along with smarter BMS and advanced cooling, will continue to push the boundaries. Our strategy is to stay ahead of this curve — optimising for not just capacity, but also safety, lifespan, and ease of deployment.

10. What are your thoughts about the policy requirement for the protection of domestic BESS companies, considering that it is allowed to import BESS fully finished containers at 11% duty by clearing customs under projects?

The current policy allowing fully finished BESS containers to be imported at just 11% duty under project exemptions creates a significant imbalance for domestic manufacturers. While we understand the need to support project economics and rapid deployment, this approach inadvertently places local companies at a disadvantage — especially those investing in manufacturing, R&D, and employment within the country.

We believe there’s a strong case for policy refinement that encourages domestic value addition without slowing down the energy transition. A graded duty structure based on localization levels, or incentives tied to domestic assembly and integration, would better align with the broader goals of self-reliance, energy security, and job creation.

As an industry, we’re not asking for protectionism — we’re asking for a level playing field that rewards quality, innovation, and local investment. A balanced policy will not only strengthen the domestic BESS ecosystem but also position the country as a global player in energy storage manufacturing.

Also Read: BESS & Demand Response | What’s the Connection?