RCRS Innovations (RCRSIL) announced its intention to start producing Battery Energy Storage Systems (BESS) in a new manufacturing unit by August of the current year. It was stated that the new unit, situated in Uttar Pradesh, would initially have a capacity of one Gigawatt and would manufacture BESS units with storage capacities of 500-kilowatt (KW) and 1,000-kilowatt (1 Megawatt).

It was mentioned that at present, RCRSIL manufactures and markets Lithium-Ion batteries under the EXEGI brand, as well as energy storage systems and solar panels from its facilities in the Delhi-NCR region. The company reportedly holds the position of being India's largest supplier of battery packs for solar lighting.

According to Aayush Goyal, MD & CEO of RCRS Innovations, the demand for BESS is expected to increase in direct correlation with the growth of renewable power in the overall power generation mix. He emphasized the importance of BESS in maintaining grid stability and ensuring uninterrupted power supply. Goyal added that there is anticipated growth in demand for BESS as a replacement for diesel gensets and for storing power generated from off-grid solar units.

Goyal also underscored the strategic importance of the new production line, stating that the company is well positioned to capture a significant market share over the next two-to-three years. Additionally, he highlighted the company's objective to increase its revenues to Rs 5 billion by FY26 through this initiative.

BESS units are reported to be extensively used by grid operators for load and frequency management, as well as by distribution companies to reduce power outages and manage electricity costs by storing less expensive electricity purchased during off-peak hours. Consumers also utilize BESS as backups during power outages and to increase self-consumption of electricity generated from off-grid solar units. These systems are increasingly seen as alternatives to diesel generators, which are significant contributors to air pollution.

As per the Central Electricity Authority's National Electricity Plan (NEP) 2023, India's energy storage capacity needs are projected to reach 82.37 GWh by 2026-27, with 34.72 GWh from BESS. By 2031-32, the requirement is expected to surge to 411.4 GWh, including 236.22 GWh from BESS.