Page 49 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

June 2025 SECI’s green ammonia tender addresses the "chicken-and-egg" challenge facing the hydrogen economy
by simultaneously stimulating demand and supply. It creates an immediate demand pull that encourages
investment in green hydrogen production, electrolyser manufacturing, and allied clean energy sectors.

This initiative is a pivotal move toward India’s goal of achieving net-zero carbon emissions by 2070 and
supports the broader vision of Viksit Bharat - a developed, sustainable, and self-reliant India. Bidders are
encouraged to bring forward their most competitive proposals, continuing SECI’s legacy of pioneering
clean energy markets with innovation, transparency, and global impact.

India Poised to Lead Global Energy Storage Revolution: Union Minister Pralhad Joshi

Union Minister for New and Renewable Energy Shri Pralhad Joshi inaugurated Battery Energy Storage
Systems (BESS) Manufacturing Facility in Bidadi Industrial Area, Bengaluru. Shri Joshi termed this launch
of a factory, as a Promise for cleaner energy, Promise for greater grid resilience and a Promise for India’s
leadership in the global energy storage market.

While underlining the target of 500 GW of non-fossil fuel capacity by 2030 set by Prime Minister Shri
Narendra Modi, Shri Joshi said that as more renewable energy comes into our grid, having reliable storage
is more important than ever. “The facilities like the one we are inaugurating today are so important. They
are critical to turning our vision into reality. This BESS plant is truly a state-of-the-art establishment. With
an annual manufacturing capacity of 5 GWh, it stands among the largest and most advanced BESS facilities
in the country,” said the minister.

“Its fully automated cell-to-pack assembly line marks a shift towards precision-driven, high-quality
production, with minimal human intervention but maximum efficiency and consistency,” added the
minister. The minister expressed the confidence that such systems will support grid stability, enable
renewable integration, manage peak demand, and help maintain frequency regulation.

The minister said that according to the India Energy Storage Alliance, the country’s energy storage sector
is likely to attract ?4.79 lakh crore investment by 2032. The CEA estimates a project requirement of 411.4
GWh (175.18 GWh from PSP and 236.22 GWh from BESS) of energy storage systems by 2032.

“I firmly believe that through this facility, PACE Digitek will not be not just building batteries, it will be
building India’s energy future. It will be creating high-value jobs, nurturing innovation, and strengthening
our domestic manufacturing ecosystem in line with Modi ji’s vision of Aatmanirbhar Bharat,” said the
Minister. While referring to Modi government’s efforts in direction of setting up of battery storage
systems, Shri Joshi said, “Modi government is planning to roll out an additional ?5,400 crore as viability
gap funding to support the setting up of 30 GWh of battery storage systems. This is over and above the
?3,700 crore already being given under the existing VGF scheme, through which 13.2 GWh of BESS
projects are already being implemented.”

“As India rolls out the VGF scheme for battery storage and works with stakeholders across sectors to grow
the storage market, having world-class manufacturing like this will be very important. It will help meet
rising demand, reduce imports, and make our power grid more efficient,” he added. Our renewable
capacity is growing fast: we are adding 25–30 GW every year. But without storage, we will either waste

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