Written by: Fatima Younis
India's Premier Energies announced the completion of a shareholders' agreement to establish a joint venture aimed at setting up an advanced manufacturing facility for battery energy storage systems with a total capacity of up to 12 gigawatt-hours in the Indian state of Telangana. This step comes as part of the company's business expansion to include the clean energy storage sector alongside its current activities in the manufacture of solar cells and modules.
Details of the Energy Storage Facility
The agreement was signed between a wholly-owned subsidiary of Premier Energies, the new joint venture company, and RCT Nexur Energy, a subsidiary of Germany's RCT Group. The facility is scheduled to be established in the Seetharampur area of Telangana, with the first phase of the project targeting a production capacity of 6 gigawatt-hours, and operations are expected to begin during the 2027-2028 fiscal year.
The new facility will manufacture and assemble energy storage systems tailored for various applications, including residential, commercial, and industrial sectors, as well as utility-scale uses, contributing to supporting renewable energy grid infrastructure and meeting the growing demand for sustainable energy storage solutions in domestic and global markets.
Share Structure and Expansion of Production Capacities
According to the terms of the agreement, the German company is entitled to acquire up to a 15 percent stake in the joint venture across four tranches linked to project milestone stages, with an option to own an additional 5 percent stake for a cash consideration at the end of the first phase. The joint venture's board of directors will consist of representatives from the partners to oversee operations and development.
This strategic step coincides with the Indian company strengthening its manufacturing capabilities in the renewable energy sector, as its production capacity for solar modules has increased significantly, alongside an increase in solar cell capacity supported by the operation of a new TopCon cell facility in the state of Andhra Pradesh, in addition to securing new orders to boost its future growth plans in the energy sector.
