GoodEnough Energy, a battery energy storage systems (BESS) manufacturer, said it will open India’s largest BESS gigafactory with 7 GWh capacity in Jammu & Kashmir. The gigafactory is expected to commence operations in October 2024, with plans to scale up the capacity to 20 GWh by 2026.

The Greater Noida-based company has committed an investment of ₹4.50 billion (~$54 million) into the state-of-the-art facility. GoodEnough Energy aims for the gigafactory to support India’s net-zero emissions goals by reducing over 5 million tonnes of CO2 annually.

“The electricity industry is transforming, creating a growing need for clean, reliable, and affordable power solutions,” said Akash Kaushik, Founder of GoodEnough Energy. ” With India’s largest and state-of-the-art BESS Gigafactory in J&K, we are focusing on developing indigenous BESS technologies with global competence and cutting-edge features.”

In addition to its industrial applications, the factory’s BESS offerings will bolster India’s expanding EV charging infrastructure by enabling fast charging in areas with weak grid access, the company said. The solutions will allow to store energy during off-peak hours to reduce costs.

The gigafactory will create over 100 new supplier and vendor opportunities for small and medium enterprises and boost job creation in the Jammu & Kashmir region, according to the company. At the full 20 GWh scale, GoodEnough Energy estimates its battery storage capacity could reduce 15 million tonnes of CO2 emissions annually by 2026.

The Ministry of Power today issued the operational guidelines for the ₹94 billion (~$1.1 billion) program to provide viability gap funding of up to 40% to develop 4,000 MWh of BESS capacity across the country.

A recent auction conducted by the Gujarat Urja Vikas Nigam to set up pilot projects of 250 MW/500 MWh standalone BESS recorded the lowest tariff ₹448,996 (~$5,424)/MW/month as battery prices continue to drop globally.

The global venture capital funding in the energy storage sector in 2023 reached a record $9.2 billion, a 59% year-over-year increase from $5.8 billion, according to a Mercom Capital Group report.