Vikram Solar

The battery storage offers unique opportunities as it is flexible, can be developed quickly and has multiple applications leading to promote numerous value streams. Apart from this, the consistent fall in the price of lithium-ion batteries, the attractiveness of BESS has further soared north. Globally, the advancements in adjacent digital technologies such as AI, block chain, predictive analysis are giving rise to aggregated solutions and innovative business models, that were nearly inconceivable a few years back

What was the study about?

Contriving a strategy for the client under short-medium-long term market

The client aims to focus on building a robust battery solution environment which aims at both development & deployment. Thus, prima facie, the client aims to build on its business strengths to provide battery solutions to utilities, IPPs (including RE companies) & standalone micro/mini grid system operators. Therefore, a consistent insight onto the market, its allied volume & customer along with system delivery capable for different services vis-à-vis competition is important to contrive a holistic business strategy under short-medium-long term basis

Focus areas of the study

The objective of the was to design a pathway to the client

The prime objective of this advisory shall be to study the market and design a pathway to the client in order to scale up “Battery Energy Storage” as a matured & financially strong business units per se the Indian market providing standalone as well as integrated solutions. Capturing the market nerves vis-à-vis demand-supply, potential end consumers, solution offerings, competition, pricing models, new technology understanding , market entry, revenue value streams etc. were pivotal in this advisory.

Eninrac’s approach for the study

To cater to the client’s requirements, the study was broadly classified into three phases

The scope was broadly classified under three phases –

1. Phase I: Gathering a detailed vision of the BESS market in India.
2. Phase II: Identifying value proposition for the client across India’s BESS market space.
3. Phase III: Go-to-Market strategy for the client to venture in India’s BESS segment.

Eninrac’s recommendations

Key prepositions & recommendations suggested by Eninrac to the client

1. Gaining a market clarity is must: Developing a complete understanding of the market archetypes of BESS is a must. To channel the investment into the right/ideal fit value chain segment its quintessential to gain clarity upon the battery development & deployment. Also, examining the most suited business models such as – wholesale market (Utility owned, IPP owned etc.), substation (utility owned grid asset, LSE contract etc.), end use customer (ESCO etc.)
2. Thinking of long duration energy systems: as such systems allow flexibility with the source of energy & entails low marginal costs for storing electricity.
3. Identifying the best value chain options for the client w.r.t to its existing clientele regards energy storage-based solutions. Focusing upon identifying the first mover advantage for the client regards energy-based solutions or across BESS value chain that can scale up its consumer base.
4. Identifying the pricing models for the clients w.r.t. energy storage solutions offered.
5. Identifying the delivery systems for the clients w.r.t. energy storage solutions offered.
6. Identifying the BESS ecosystem & target markets w.r.t. value streams such as :
   1. Customer service - Backup Power, increased PV self consumption etc.
   2. Utility services- Distribution deferral , transmission deferral, Transmission congestion relief etc.
   3. Transmission services- Energy arbitrage, spin-non-spin reserve etc.