Onix Renewable Limited is considering venturing into Battery Energy Storage System (BESS) manufacturing, signaling a strategic move towards capitalizing on the increasing demand for energy storage solutions. This initiative aligns with the growing trend of renewable energy projects incorporating BESS, enhancing grid stability and supporting the supply of renewable energy. The company's potential expansion reflects a commitment to innovation and growth in the renewable energy sector.
Rajkot-based solar module manufacturer, Onix Renewable Limited Shares is strategically considering an expansion into Battery Energy Storage System (BESS) manufacturing, positioning itself to capture a significant share of India's burgeoning energy storage market. This move aligns with the increasing prevalence of BESS in renewable energy projects, driven by the need for enhanced grid stability and reliable power supply.
Hardik Adhiya, Chief Operating Officer of Onix Renewable, highlighted the growing importance of BESS in the renewable energy landscape. According to Adhiya, approximately 80% of current renewable energy tenders incorporate provisions for BESS, underscoring its critical role in ensuring grid availability and stability. Furthermore, BESS facilitates the delivery of renewable energy to key sectors such as agriculture during daytime and industries after nightfall, addressing critical energy needs.
Currently, Onix Renewable imports BESS systems from China for its EPC projects. However, with the anticipated increase in indigenous manufacturing, Adhiya expects the cost of these systems to decrease by 30-40%, making them more economically viable for broader applications. This potential cost reduction, driven by domestic production, presents a significant opportunity for Onix Renewable to enhance its competitiveness and expand its market reach.
The expansion into BESS manufacturing represents a strategic step for Onix Renewable Limited Shares, allowing it to integrate vertically and capture more value within the renewable energy value chain. By establishing a domestic manufacturing base, the company can reduce its reliance on imports, mitigate supply chain risks, and potentially offer more competitive pricing to its customers. This initiative also aligns with the Indian government's push for self-reliance in the renewable energy sector, supported by policies such as the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing.
India's BESS market is poised for substantial growth, driven by the country's ambitious renewable energy targets and the increasing need for grid stabilization. The National Electricity Plan (2023) sets a target of 236 GWh of BESS capacity by 2031-32, indicating the immense potential for energy storage solutions. As more indigenous manufacturers enter the market, the cost of BESS is expected to decline, further accelerating its adoption across various sectors.
For investors, this potential move by Onix Renewable into BESS manufacturing represents a promising opportunity. The company's proactive approach to capitalizing on emerging trends in the renewable energy sector demonstrates its commitment to growth and innovation. By diversifying its business portfolio and strengthening its position in the energy storage market, Onix Renewable Limited Shares is poised to generate long-term value for its shareholders. The strategic expansion into BESS aligns with the broader industry trends and government initiatives, further bolstering the company's prospects for sustained growth and success in the evolving renewable energy landscape.
