What is India's proposed local content requirement for battery storage systems?

India is considering a mandate for at least 50% domestic components in battery energy storage systems for renewable energy projects.

Why is the Indian government pushing for local battery storage manufacturing?

The government aims to reduce import reliance, enhance national security by controlling critical hardware, and decrease foreign exchange outflow.

Could India's push for local battery parts slow its green energy transition?

There are concerns that mandatory local content could increase costs, potentially slowing the adoption of renewable energy projects.

Home / Business and Economy / India's Green Energy Push: Local Parts Mandate Sparks Debate

India's Green Energy Push: Local Parts Mandate Sparks Debate

14 Jan

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Summary

India considers mandating 50% local content for battery storage components.
Security concerns and reducing import reliance drive the localization push.
Experts debate if mandates will slow India's green energy transition.

India's Green Energy Push: Local Parts Mandate Sparks Debate

The Indian government is considering a proposal to mandate a minimum of 50% domestic components for battery energy storage systems (BESS) used in wind and solar farms. This initiative aims to curb reliance on imports and enhance national security by tightening control over critical energy infrastructure hardware. Discussions are underway with industry stakeholders to determine a suitable transition timeline for this indigenization effort.

While the government seeks to reduce foreign exchange outflows and foster a local supply chain, concerns have been raised about the potential for increased power costs and a slowdown in the country's ambitious green energy targets. Former power secretary Alok Kumar cautioned that aggressive localization mandates could impact project bankability and adoption rates.