Abhinandan Sethi, Managing Director, SPML Infra Limited
Clean energy is changing the way the world produces and uses power. Renewable energy is now one of the fastest-growing sectors globally as countries across the globe are working to reduce carbon emissions and address climate change in line with COP commitments. The United Nations’s Sustainable Development Goal – SDG-7, calls for ensuring universal access to affordable, reliable and sustainable energy. This includes improving energy efficiency, increasing the share of renewables and further diversifying the energy mix while ensuring affordability of energy for all. And governments across the world are introducing supportive policies and incentives to accelerate this transition, encouraging a shift away from traditional fossil fuels such as coal and oil toward cleaner, more sustainable energy sources.
India is playing a leading role in this global transformation through its ambitious clean energy mission. The country has set significant renewable energy targets and rapidly expanding its solar, wind, green hydrogen, and energy storage capacities. Supported by progressive policies and strong investments, India is building a cleaner, more sustainable energy ecosystem while strengthening energy security, creating jobs, and driving long-term economic growth.
With the ambitious renewable targets and rising energy demand, India is reimagining how power is generated, stored, and delivered. At the heart of this transition lies a technology that is quietly becoming indispensable, and that is Battery Energy Storage Systems (BESS). With a target to achieve 500 GW of non-fossil fuel power capacity by 2030 and progress towards net-zero emissions by 2070, India is accelerating investments in renewable energy and grid modernization. As solar and wind power generation continue to grow, by storing extra renewable energy and making it available when required, BESS helps ensure a stable and dependable power supply.
Beyond improving grid reliability and energy security, BESS helps integrate larger volumes of renewable energy, reduce dependence on fossil fuel-based peaking power, and support the development of a resilient, sustainable, and future-ready power infrastructure. As India advances towards its clean energy goals, BESS is set to play a pivotal role in powering the nation's energy transformation.
Energy Storage: SPML Infra's New Growth Engine
SPML Infra Limited’s entry into this space is not just a strategic business move but also a deeper commitment to building a reliable and sustainable energy ecosystem for India. As the country pushes towards 236 GWh of energy storage by 2031–32, solutions like BESS are rapidly emerging as the backbone of a resilient power system.
SPML Infra has been building critical water and power infrastructure across India since its inception in 1981, our entry into BESS is both timely and strategic. This move is significant because the transition to renewable energy is no longer just about adding solar panels or wind turbines. It is about creating an intelligent, flexible, and reliable energy system and storage is central to that vision.
Partnership with Energy Vault
SPML Infra has joined hands with Energy Vault, USA, in a partnership central to our growth in India's fast-expanding BESS market. The collaboration combines Energy Vault's advanced energy storage technology with SPML Infra's extensive experience in delivering large-scale infrastructure projects. Our shared goal: deliver utility-scale BESS solutions that strengthen grid stability, enable smoother integration of thermal and renewable power, and advance India's clean energy ambitions.
Manufacturing sits at the heart of this collaboration. We are building our production and system integration capacity for battery storage solutions and components in line with the "Make in India" vision, cutting import dependence and anchoring a robust domestic supply chain. Our Pune-based BESS manufacturing facility will boost local manufacturing capabilities, sharpen cost efficiency, and accelerate project timelines. Recently a senior members’ team from Energy vault visited our upcoming facility and witnessed the significant progress being made in establishing the state-of-the-art manufacturing facility and appreciated the scale, quality, and advanced production capabilities being developed. With the facility set to become operational soon, it marks another important milestone in strengthening India's energy storage ecosystem and supporting the nation's clean energy transition.
Looking ahead, this partnership positions us to scale BESS deployment nationwide, meeting rising demand for renewable integration and grid-scale storage. Our target: at least 10 GWh in BESS manufacturing and deployment by 2030, fuelling the long-term expansion of India's energy storage landscape.
SPML Infra’s 1 GWh BESS Order
SPML Infra has already received a major ₹1,128 crore contract from NTPC Limited to build a large-scale Battery Energy Storage System of 1 GWh, reinforcing its role in powering India's shift toward sustainable energy. Recognized as the country's largest single BESS order awarded, the project covers complete turnkey delivery of a 250 MW / 1,000 MWh facility. The scope spans supplying and installing high-capacity 5 MWh DC battery containers, integrating Battery Management Systems (BMS) and Thermal Management Systems (TMS) for safe and efficient operation, and building the electrical infrastructure alongside associated civil works, erection, testing, and commissioning. The project has an implementation period in 18 months, followed by a 15-year O&M agreement to ensure sustained performance and reliability.
This order marks an important milestone for SPML Infra and strengthens our position in the fast-growing BESS sector. It shows the company's capability to execute large-scale energy storage projects and supports India's transition towards clean and renewable energy.
The project also adds significantly to SPML Infra's order book and provides long-term revenue stream through a 15-year operation and maintenance contract. More importantly, it will help build strong expertise in energy storage solutions, creating opportunities for future projects in India and international markets. As demand for energy storage continues to grow, this project reinforces SPML Infra's role in building sustainable energy infrastructure.
Risk & Rewards
BESS projects offer significant rewards, particularly in renewable energy integration and improving grid flexibility. BESS helps store excess energy from solar, wind and even thermal and dispatch it when needed, increasing overall system efficiency and reliability. These projects can generate multiple revenue streams for developers and investors and presents a strong growth opportunity as global demand for grid stability and decarbonization continues to rise, supported by favourable policies, incentives, and falling battery costs.
For companies executing BESS projects, such as EPC contractors, system integrators, and technology providers, the rewards can be substantial. They will benefit from growing demand for energy storage driven by the global shift toward renewable energy and grid modernization. Execution companies can secure steady revenue through engineering, procurement, construction, and long-term operation and maintenance (O&M) contracts. The successful project delivery enhances technical expertise and strengthens market positioning, allowing companies to win repeat contracts and expand into new geographies.
However, BESS projects also carry notable risks that must be carefully managed. One key risk is market and revenue uncertainty, as income often depends on evolving electricity market structures and regulatory frameworks. Changes in tariffs, grid rules, or subsidy programs can directly affect returns. Technology risks exist, including battery degradation, performance variability, and safety concerns such as thermal runaway events. Supply chain dependencies especially for lithium, cobalt, and other materials can also expose projects to price volatility and delays.
Another critical challenge is the high upfront capital requirement and long payback period, which can strain financing structures. Accurate forecasting of revenue streams is complex, given the dynamic nature of power markets. Project developers must consider financial, technological and environmental compliance issues, along with integration challenges with existing grid infrastructure. Despite these risks, well-structured BESS projects with diversified revenue models and robust technical design can deliver attractive long-term returns while playing a key role in the energy transition.
The Way Forward
SPML Infra’s entry into the BESS space represents more than a diversification strategy, it is our forward-looking move aligned with India’s energy transition. As the country works toward its 2030 renewable targets, storage will play a defining role in ensuring that clean energy is not just generated, but also reliably delivered.
While challenges such as technology costs, supply chain development, and grid integration remain, the long-term outlook for India's energy storage sector is highly promising. Supported by favourable government policies, rapid technological advancements, and increasing industry participation, the sector is expected to witness significant growth in the coming years.
Battery Energy Storage Systems (BESS) are set to play a crucial role in enabling higher adoption of renewable energy and ensuring a reliable power supply. For us at SPML Infra, investment in this fast emerging sector is not only unlocking new business opportunities but also contributing to India's journey towards a cleaner, more sustainable, and energy-secure future.
Quotation: “SPML Infra is committed to playing a leading role in this transformation by delivering world-class energy storage infrastructure, building domestic manufacturing capabilities, and supporting the nation's journey towards a sustainable and resilient energy ecosystem.”
About the author:
Mr. Abhinandan Sethi, Managing Director of SPML Infra Limited, is an alumnus of Boston University and London Business School. He oversees the company's strategic, financial, and operational direction, guiding project execution and shaping policies that support sustainable growth. Under his leadership, SPML Infra continues to expand into emerging infrastructure sectors, including Battery Energy Storage Systems (BESS), reinforcing its role in India's evolving energy landscape.
