CEA Recommends Incentives to Power India’s Domestic Battery Storage Manufacturing Drive – EQ
In Short : The Central Electricity Authority (CEA) has proposed incentives such as tax breaks, subsidies, and R\&D support to boost domestic manufacturing of battery energy storage components in India. Aimed at reducing import dependence, the plan supports the country’s clean energy transition and 500 GW non-fossil target by 2030, while encouraging innovation, skill development, and investment in local energy storage ecosystems.
In Detail : The Central Electricity Authority (CEA) has proposed a series of financial and policy incentives aimed at boosting local manufacturing of key components used in battery energy storage systems (BESS). The goal is to reduce India’s reliance on imports and strengthen domestic capabilities in the energy storage value chain. These recommendations are part of a broader push toward clean energy independence.
The proposed measures include tax breaks, capital subsidies, and production-linked incentives for domestic manufacturers. By encouraging local production of battery cells, battery management systems, and thermal management components, the CEA aims to support India’s growing demand for energy storage in grid stability and renewable integration.
As the country rapidly expands its renewable energy capacity, storage solutions like BESS are becoming critical to manage supply fluctuations. The CEA’s proposal also emphasizes the importance of fostering R\&D initiatives and establishing testing and certification facilities within India to ensure quality and innovation in domestically manufactured components.
To further support the sector, the proposal includes plans for skill development programs and government-backed financing mechanisms. These would help new and existing manufacturers scale up operations and adopt advanced technologies. The focus is on creating a self-sustaining ecosystem for battery storage components.
The CEA’s recommendations align with India’s broader energy transition goals, including achieving 500 GW of non-fossil fuel capacity by 2030. Developing a robust domestic BESS supply chain is seen as essential to meeting this target and maintaining energy security while cutting greenhouse gas emissions.
If implemented, these incentives could attract significant investments into India’s battery manufacturing sector and position the country as a global hub for energy storage technologies. The proposal now awaits review and potential adoption by relevant ministries and stakeholders.
