This US-based energy storage provider is eyeing manufacturing in India
What's the story
Fluence Energy, a leading provider of energy storage technology and services, is considering India as a key manufacturing and export hub. The company's US operations president, John Zahurancik, revealed the strategic move in an interview with Mint. The decision comes as global energy companies rethink their sourcing strategies amid geopolitical changes and pandemic-related vulnerabilities that highlighted the risks of concentrated production.
Localization efforts
Fluence's manufacturing plans in India
Fluence, which is backed by US power giant AES and Siemens, has started talks with local partners to localize the production of battery energy storage system (BESS) components. The company is also looking at India as a potential export hub for the Asia Pacific region and neighboring markets. However, Zahurancik clarified that these plans are still in their early stages and commercial sales timelines have not yet been determined.
Growth strategy
Existing manufacturing footprint and future expansion
Fluence, which has a 25% share in the global battery storage market, already has manufacturing units in the US and Vietnam. Zahurancik said they are considering expanding their manufacturing capabilities in India. "We will continue and explore expansions of our manufacturing, particularly of the enclosure control systems," he told Mint. He added that they are looking at opportunities to invest as demand continues to grow annually.
Market potential
Fluence's presence in India
Fluence has been serving industrial groups and firms in the utilities and independent power producers (IPP) sectors. The company had set up India's first megawatt-scale grid-connected battery storage capacity with a 10MW/10 MWh project in Delhi for Tata Power Delhi Distribution Ltd back in 2019. Zahurancik said they are actively looking at how to use Indian vendors for production here as well as shipping throughout the region.