India Launches Its First Fully Automated Battery Energy Storage System Factory in Karnataka

India’s First Fully Automated BESS Factory Opens in Karnataka
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India’s energy landscape has taken a significant leap forward with the inauguration of the country’s first fully automated Battery Energy Storage System (BESS) factory in Karnataka. The factory, established by Lineage Power, specializes in power conversion systems and control solutions, particularly in the telecom sector. Located in Bengaluru, the factory boasts an impressive annual production capacity of 5GWh and officially opened its doors on June 27, 2025.

During the inauguration, Karnataka’s energy minister, KJ George, emphasized the vital role of battery storage systems, stating that they will be integrated into all solar photovoltaic (PV) power plants. This integration will allow for the storage of excess energy generated from solar and wind sources, which can then be supplied to the grid when needed. George noted that renewable energy sources now account for 65% of the state’s generation capacity, highlighting the importance of effective storage solutions to manage peak demand periods.

While the minister did not explicitly mention a requirement for storage systems, a tweet from the state’s Department of Information and Public Relations suggested that regulations may be forthcoming.

### Bringing India Closer to Renewable Energy Goals

Lineage Power, owned by Pace Digitek, a Bengaluru-based company focused on telecom and energy solutions, aims to contribute to India’s ambitious energy targets. The factory is described as a “one of its kind, fully automated 5GWh BESS manufacturing facility,” which was established after Pace Digitek acquired the technology from General Electric in 2014.

Union Minister Pralhad Joshi, who oversees New and Renewable Energy, highlighted the significance of this factory in supporting the country’s goal of achieving 500GW of non-fossil fuel capacity by 2030. The factory will produce 5MWh DC blocks for utility-scale applications, paired with a 2.5MW power conversion system.

As more renewable energy sources are integrated into the grid, the need for reliable and scalable energy storage becomes increasingly critical. Minister Joshi expressed optimism that projects like this factory would play a crucial role in achieving national energy goals.

### Future of Energy Storage in India

Debmalya Sen, president of the India Energy Storage Alliance (IESA), recently noted the importance of promoting domestic supply chains for energy storage. While India has awarded subsidies for the manufacturing of advanced chemistry cell batteries, the production of battery cells—the most complex aspect of the value chain—has yet to gain momentum. However, it is anticipated that by the end of the decade, India will have 225GWh of annual production capacity for battery packs.

In addition to BESS, the Central Electricity Authority (CEA) has indicated the necessity for significant pumped hydro energy storage (PHES) to provide long-duration storage solutions. Karnataka is planning to implement a 2GW battery storage project along with three PHES plants, including the 2GW Sharavathi project, the 1.5GW Varahi project, and the 1GW Pavagada project. Furthermore, NTPC, a state-owned power producer, is piloting the use of flow battery storage and exploring carbon dioxide-based long-duration storage technologies.

Overall, the opening of the fully automated BESS factory in Karnataka marks a pivotal moment in India’s transition towards renewable energy and sustainable energy storage solutions.