Waaree Secures $110.9 Million for 20GWh Energy Storage Facility

An energy storage subsidiary of Waaree Energies has successfully raised IR10 billion (approximately US$110.9 million) to fund its planned manufacturing facility in India. The funding round for Waaree Energy Storage Solutions Pvt Ltd (WESSPL) was completed recently and will contribute to a total investment of IR100 billion needed for the construction of a new lithium-ion (Li-ion) cell and pack factory.

The new plant is designed to achieve a combined annual production capacity of 20GWh when fully operational. Specific details regarding the division of production capacity between cells and modules have not been disclosed. The facility will manufacture products intended for the battery energy storage system (BESS), electric mobility, and distributed energy markets.

As India’s leading solar photovoltaic (PV) manufacturer, Waaree Energies boasts an impressive annual manufacturing capacity of 22.3GW in solar modules and 5.4GW in PV cells. By the end of December 2022, the company was recognized as the manufacturer with the highest capacity listed on the Indian government’s Approved List of Models and Manufacturers (ALMM), which is published by the Ministry of New and Renewable Energy (MNRE) to ensure that suppliers meet quality and efficiency standards.

Ankit Doshi, director of WESSPL, stated, “With these strategic resources, we will fast-track the commissioning of our 20GWh cells and battery pack facility, strengthen domestic supply chains, and contribute to the growth of India’s energy storage capacity.” This announcement comes shortly after the Indian Ministry of Power issued a directive mandating that all projects applying for capital expenditure support under the government’s Viability Gap Funding (VGF) scheme must incorporate a minimum of 20% domestic content by capital expenditure value.

The establishment of this new factory is considered a crucial milestone in Waaree’s integrated renewable energy manufacturing roadmap. The company aims to vertically integrate its manufacturing processes, expanding from solar PV modules and inverters to include batteries and complete energy storage systems (ESS).

While both public and private sector initiatives have successfully promoted Indian solar manufacturing, including the more complex production of solar cells and modules, the advancement of battery and ESS manufacturing is still in its nascent stages. A report from the Institute for Energy Economics and Financial Analysis (IEEFA) noted that much of the momentum in solar manufacturing has been fueled by the government’s Production Linked Incentive (PLI) scheme, which was introduced in 2022.

The PLI scheme for advanced cell chemistry (ACC) battery manufacturing, which operated from 2021 to 2022, aimed to incentivize a total capacity of 50GWh. However, the manufacturing goals of some companies, excluding Waaree, have encountered delays.

According to recent discussions at an industry event, while investments in downstream technologies like battery management systems (BMS) and liquid cooling systems have generally been successful, challenges remain in the battery and ESS manufacturing sectors, which account for approximately 80% of total system costs.

The successful funding round for WESSPL marks a significant step forward for Waaree Energies as it seeks to enhance India’s capabilities in energy storage and contribute to a sustainable energy future.