BESS is the solution for peak power demand

The Indian government has announced that we have achieved a target of 248-250 GW of renewable energy five years ahead of the original target set for 2030. Pankaj Kapoor, Vice President of DBU & NRPO at Cummins India Limited, discusses the importance of energy storage innovations in helping India meet its renewable energy targets.

How will energy storage innovations help India meet its RE targets?

The Indian government has announced that we have achieved a target of 248-250 GW of renewable energy five years ahead of the original target set for 2030. When we generate renewable energy from wind and solar sources, we need to store it for non-peak hours. This solution provides customers with technology and opportunities to store energy generated during the day and use it during peak hours, thereby avoiding peak shaving, reducing costs, and improving sustainability.

It’s an ecosystem we need to develop. We have to generate electricity from renewable sources and store it. We have peak hours at night when consumption goes up across the country; in that case, we can use BESS, and we can also utilise the efficiency and capacity for renewable energy.

How do you envision the policy framework, including the national electricity plan and draft-based guidelines? What sectors or applications are emerging as most practical for this?

Our government is focusing on renewables, which will improve adoption. Specific policy initiatives, such as VGF funding and the PLI scheme, are designed to address high upfront installation costs. These initiatives aim to lower the total cost of ownership and improve ROI, thereby accelerating adoption in the Indian market.

There are industries where the energy demand is high, and peak-hour energy is also important. For example, the industrial sector and data centre sectors require uninterrupted power, reliability, and grid stability.

What key factors are customers most focused on when evaluating BESS technology?

Customers consider grid stability, cost, overall ROI, safety, and reliability. These are the factors that customers are very interested in. We are conducting a roadshow to raise awareness, as this technology is becoming increasingly prevalent. We also did the first session for this technology in Hyderabad during Q2 of this year, in April, followed by a virtual launch towards the end of June. Over the past 27 days, we have conducted a roadshow in 14 states, covering nearly 4500 kilometres and interacting with around 300 customers, from the north to Mumbai, Gujarat, and Madhya Pradesh. We have a van equipped with the best display to showcase our products to customers.

We already have a strong network based on our power generation business across India. We have 18 offices spanning from Kashmir to Kanyakumari, offering a wide reach. A customer who buys the best from us gets the reliability and dependability of our brand, and we have a service network across the country. Selling a product is one thing, but providing after-sales service and support is also important, as it demonstrates our credibility and earns the appreciation of our customers.

What sets your BESS solution apart from other players?

We believe in providing value to the customer in the total cost of ownership, not only the upfront cost. That has always been our strategy. We are providing a scalable and modular solution. We offer 10-foot and 20-foot containers, featuring a plug-and-play model, LFP technologies, and a thermal management liquid cooling system. We offer a three-layer secure safety product, a global solution we have developed. We provide these custom products across Europe, Asia-Pacific, Africa, the Middle East, and China. This will provide value to our customers, as they see safety, ROI, and reliability, and we are working to meet their expectations.

What are the top priorities for an energy storage procurement?

Customers are looking for reliable partners, safety, total cost of ownership, after-sales networks, and after-sales support. These are customers’ top priorities, and we are fulfilling all of these. Whenever a customer makes a purchase, they have specific preferences. And we are a value-driven country; customers see value, not just cost.

Beyond storage solutions, what other clean energy technologies will you rely on in the coming years?

We are in EV battery energy transition mode. We are also on the highway side. We are in the process of launching H₂ ICE engines. We have hybrid products, fuel-agnostic engines, and gas engines. For energy transition and a sustainable world, we have those technologies. We are working to provide solutions to our customers.