In a significant move for India's clean energy sector, US-based Fluence Energy, one of the world's largest battery storage providers, is actively considering establishing a manufacturing base for Battery Energy Storage Systems (BESS) in the country. This strategic initiative aims to not only serve the domestic market but also position India as a pivotal export hub for the Asia Pacific region.
Strategic Shift in Global Supply Chain
The decision comes as global energy players, including Fluence, reassess their sourcing models. The company's senior leadership cited geopolitical shifts and vulnerabilities exposed during the COVID-19 pandemic, which highlighted the risks of over-concentrated production. John Zahurancik, Senior Vice-President and President of US Operations at Fluence Energy, confirmed in an interview that the company has initiated discussions with domestic partners to localize the manufacturing of BESS components.
"We have been exploring manufacturing in India. We have some manufacturing already in Vietnam, so we continue to look at opportunities to invest in those places as we see that the scale of this is getting bigger every year," Zahurancik stated. He emphasized that the manufacturing plans are currently in the prototype stage, with final timelines for commercial sales yet to be determined.
India's Role as a Future Export Hub
Fluence's vision extends beyond India's borders. The company is evaluating the potential to use its Indian manufacturing base for exporting components to neighbouring markets and across the Asia Pacific. This ambition is bolstered by Fluence's substantial existing presence in India, which includes a global innovation centre in Bengaluru.
"We have a large presence in India through our global innovation centre... it's where we continue to recruit a lot of the talent," Zahurancik explained. "That's naturally been translating into looking at how we go into using Indian vendors for production here in India as well as shipping throughout the region." While a specific date for commencing exports has not been set, he confirmed it is an "active part" of their current strategy.
Market Potential and Current Footprint
Fluence is no stranger to the Indian market. The company made history by setting up India's first megawatt-scale grid-connected battery storage capacity—a 10 MW/10 MWh project in Delhi for Tata Power Delhi Distribution Ltd back in 2019. Currently, its installed battery energy capacity in India stands at an impressive 270 MWh, primarily integrated with hybrid green energy projects.
Despite this early lead, Zahurancik acknowledged that the Indian energy storage market has experienced a "stop-start mode." However, the underlying potential is massive. Official projections from the Central Electricity Authority (CEA) indicate that India will require approximately 82.37 GWh of energy storage capacity by FY27, soaring to about 411.4 GWh by 2031-32.
The pipeline is already growing robustly. Data shows that during April-October 2025, central nodal agencies and state distribution companies awarded standalone BESS projects totalling over 20 GWh. Furthermore, the integration of storage with renewable projects is becoming the norm, with round-the-clock, firm and dispatchable renewable energy, and solar-plus-storage projects accounting for 90% of the total renewable energy capacity awarded in the first eight months of the current fiscal year.
This growth is supported by a significant decline in global battery costs, which has made BESS projects more viable. According to a recent ICRA report, the levelized cost of storage using BESS for 2-4 hours in India is now in the range of ₹4.0-7.0 per unit, a substantial drop from ₹8-9 per unit in 2022.
While the journey for large-scale battery manufacturing in India is still nascent, Fluence's serious consideration marks a vote of confidence in the country's potential to become a global clean energy manufacturing powerhouse.
