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					</table>India’s battery energy storage market might be gaining momentum, but sluggish project execution has exposed deeper questions around bankability, lifecycle costs, degradation risks, and market readiness.
In an exclusive interview with Mercom India, Ayush Misra, Co-Founder at <a href="https://amperehourenergy.com/" target="_blank" rel="noopener">AmpereHour Energy</a>, discusses why storage projects must be evaluated as sophisticated grid assets rather than simple battery procurement exercises, and how large-scale deployments can be made commercially viable.
Can you tell us about AmpereHour Energy&#8217;s presence in the battery energy storage sector and the projects you are currently working on? 
 
AmpereHour Energy is a full-stack battery energy storage systems company founded in 2017. We focus on designing, integrating, and optimizing intelligent energy storage solutions across the utility and commercial and industrial (C&amp;I) sectors.
Our focus is not only on deploying batteries but also on building intelligent storage infrastructure that provides reliable, dispatchable renewable energy to strengthen India’s evolving power system.
We recently commissioned the 180 MW/360 MWh battery storage project in Gujarat, one of India&#8217;s largest standalone utility-scale battery storage projects. Other than that, we are currently working on utility-scale, renewable integration, and grid-support projects to expand into larger grid-scale deployments.
India has announced an ambitious pipeline of storage projects. What percentage of these projects do you believe are bankable today, and what is preventing the rest from reaching financial closure?
India has built a very strong pipeline of storage projects, reflecting growing confidence in storage as a critical grid asset and strong policy intent.
However, financial viability depends on much more than just project announcements.
Tariffs discovered during recent reverse auctions are unviable at today’s battery costs.
As an industry, we must ensure that storage system assets installed in these projects meet a quality standard that will ensure they last for 15-20 years.
To ensure a project&#8217;s bankability, we also need to consider revenue and regulatory certainty, power purchase agreements, creditworthiness of offtakers, and robust payment mechanisms.
The lack of proven long-term revenue models and revenue stacking, delays in regulatory approvals and contract execution, payment risks from distribution companies (DISCOMs), and counterparty concerns are some of the other barriers.
Do you think battery storage adoption is moving faster than its commercial viability? Where do you see the biggest disconnect between expectations and reality?
India has announced an array of ambitious renewable energy projects and is implementing policies to support them, which has been driving battery storage adoption.
However, commercial maturity is still catching up to deployment momentum, as commercial frameworks evolve.
A major disconnect is the expectation that storage is just another infrastructure asset. In reality, its economics depends on multiple revenue streams. Limited revenue stacking, evolving ancillary service markets, financing, and the development of lender confidence are other areas of disconnect.
The good news is that all of these factors are signs that the market is in transition. Once regulations mature and revenue models diversify, commercial viability will eventually be aligned with the pace of deployment.
What is the single biggest misconception policymakers, developers, or investors have about battery energy storage in India? 
 
The biggest misconception is that battery energy storage is just a battery procurement exercise. In reality, a battery storage system is a sophisticated grid asset whose value extends far beyond just battery cells. Factors such as software, power conversion systems, controls, safety, integration, and lifecycle management drive its performance and economics. When all these factors are ignored, it&#8217;s like missing out on the full value that a storage system can deliver to the grid.
Storage is often promoted as the natural next step after solar. Does battery storage make economic sense for most consumers today, or only for specific use cases?
Battery storage can make sense for most consumers today, as evidenced by its growth. It is definitely the next step in energy transition, but it cannot have a single solution that fits everyone. Considering the scale of renewable integration, grid support, ancillary services,  rising grid tariffs in the C&amp;I segment, and the need for power reliability, it is evident that battery storage makes sense as the next natural step after solar.
Many states are introducing storage mandates and changing banking rules. Do you believe policy is moving faster than market readiness?
India seems to have taken a proactive approach to its energy storage policy, with several states introducing storage mandates.
This policy momentum comes off as timely and necessary. Policy implementation will help create a market by earning investors&#8217; confidence, encouraging infrastructure development, and creating certainty of demand for developers and manufacturers.
Market readiness needs to catch up with these policies by focusing more on standardized procurement and contracting frameworks, faster regulatory approvals, grid infrastructure readiness, bankability and financing, while ensuring a skilled ecosystem for deployment, operations, and maintenance.
How prepared are DISCOMs and transmission utilities to integrate large volumes of battery storage?
DISCOMs and transmission utilities have made significant progress in recognizing the value of battery energy storage, but their level of preparedness varies across states and utilities. They have helped increase the number of battery storage tenders and provide more information on storage for peak-demand management, renewable integration, and grid reliability.
However, there is still a need to integrate storage into grid planning and dispatch, to build technical expertise to operate and optimize battery storage systems, and to develop market mechanisms for ancillary services and flexibility. DISCOMs’ preparedness will improve rapidly as more projects become operational and utilities gain hands-on experience.
What risks associated with battery degradation, augmentation requirements, and replacement costs are still being underestimated by project developers and investors?
When evaluating a battery energy storage project, the major risk is the upfront cost rather than the long-term performance.
The economics of energy storage depends on how well it performs over 10–20 years. There are some key risks in battery systems, such as battery degradation over time, augmentation planning to maintain contracted performance, replacement costs, and lifecycle budgeting.
These are some things that need to be looked into from a sustainable, long-term perspective.
India is pursuing both domestic battery manufacturing and large-scale storage deployment simultaneously. Which is likely to become the bigger bottleneck? Manufacturing capacity, supply chains, financing, or skilled manpower?
There is no single bottleneck, as all four factors are critical to scaling India’s storage ecosystem. In the near future, financing and commercial bankability are likely to be the biggest constraints. Investments in the manufacturing segment are accelerating under supportive policies, and capital is available, but investors require predictable returns and lower risk.
What we need are proven revenue models, long-term bankable contracts, lender confidence in standalone battery energy storage systems, and skilled manpower as deployment scales.
We need a long-term roadmap for the localization of manufacturing. A systematic, well-planned localization plan implemented over a 4 to 6-year horizon can create a flourishing energy storage manufacturing ecosystem in India.
What lessons has the industry learned from early battery storage system deployments that are not widely understood today?
One of the most important lessons from early battery storage deployments is that a project’s success is influenced more by system design, integration, and operational intelligence than by the battery cells themselves.
Battery selection is just part of the equation; energy management systems, battery management systems, power conversion systems, thermal management, safety architecture, and control strategies collectively determine performance.
What is one hard truth about India&#8217;s battery storage market that the industry is not discussing enough?
The hardest truth about India’s battery storage market, which the industry does not discuss enough, is that it&#8217;s not just a technology problem but a viability problem. Aggressive tariff discovery, import dependence, and underestimated lifecycle costs contribute to the economic fragility of large-scale projects, even with rapid capacity additions.
Winning bids do not always translate into sustainable, bankable assets, as developers often overlook long-term degradation, O&amp;M complexity, and grid performance risks, and still price their batteries like commodities.

Industry Must Perceive Battery Storage Systems as Grid Assets: Interview

Terabase Energy, a digital solutions provider for solar power projects, <a href="https://cms.mercomindia.com/terabase-secures-130-million-in-series-c-funding/" target="_blank" rel="noopener">received</a> $130 million in a Series C funding round led by SoftBank Vision Fund 2, with participation from existing and new strategic investors. This round brings the company’s total funding to over $200 million. The company provides digitalization and automation solutions for utility-scale solar power projects through its platform, which is stated to combine AI, software, automation, SCADA, and project controls.
Catalyze, a project developer and Independent Power Producer of distributed renewable energy assets has <a href="https://cms.mercomindia.com/renewable-energy-developer-catalyze-secures-400-million-funding/" target="_blank" rel="noopener">secured</a> a $400 million multiyear debt facilityportfolio of commercial and industrial, community solar, and battery storage projects across the U.S.
Energy storage solutions provider AmpereHour Energy <a href="https://www.mercomindia.com/energy-storage-solutions-provider-amperehour-secures-5-million" target="_blank" rel="noopener">secured</a> $5 million (₹415 million) in a Series A funding round led by Avaana Capital, with participation from UC Impower and existing angel investors. The company will utilize the funds to accelerate its battery energy storage solutions deployment, enhance manufacturing capabilities, expand product offerings, and strengthen research and development efforts.
Amrut Energy, a solar water pump manufacturer and renewable energy solutions provider, <a href="https://www.mercomindia.com/amrut-energy-raises-%E2%82%B91-billion-to-expand-solar-water-pump-manufacturing" target="_blank" rel="noopener">secured</a> ₹1 billion (~$11.49 million) in funding from private equity investors. The company aims to utilize the investment to expand manufacturing capabilities, drive research and development, and scale operations across underserved regions.
Solar power systems company SWELECT Group <a href="https://www.mercomindia.com/swelect-raises-%E2%82%B92-9-billion-through-private-placement-with-india-infradebt" target="_blank" rel="noopener">secured</a> ₹2.9 billion (~$33.39 million) in funding through non-convertible debentures via a private placement with India Infradebt. This initiative, backed by a portion of its solar power assets, has released ₹2.6 billion (~$29.94 million) in cash collaterals. The funds will be reinvested to expand SWELECT’s independent power producer portfolio to 1 GW by 2026-27.
JSW Neo Energy, a wholly owned subsidiary of JSW Energy, <a href="https://www.mercomindia.com/jsw-neo-acquires-renewable-energy-firm-virya-infrapower-for-%E2%82%B975-4-million" target="_blank" rel="noopener">acquired</a> a 100% share in Virya Infrapower for ₹75.4 million (~$866,000) in an all-cash transaction. The acquisition was completed on March 12, 2025, the same day the share purchase agreement was signed. This purchase makes Virya Infrapower a step-down subsidiary of JSW Energy.
For reports and trackers on funding and M&amp;A transactions in solar, energy storage, and smart grid sectors, click <a href="https://cms.mercomindia.com/clean-energy-reports/" target="_blank" rel="noopener">here</a>.
Read last week&#8217;s funding <a href="https://cms.mercomindia.com/funding-and-ma-roundup-tandem-pv-raises-50-million/" target="_blank" rel="noopener">roundup</a>.
&nbsp;

Funding and M&A Roundup: Terabase Energy Secures $130 Million

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					</table>From: <a href="https://mercomcapital.com/funding-and-ma-roundup-terabase-energy-secures-130-million/" target="_blank" rel="noopener">Mercom Capital Group</a>
Terabase Energy, a digital solutions provider for solar power projects, <a href="https://mercomcapital.com/terabase-secures-130-million-in-series-c-funding/" target="_blank" rel="noopener">received</a> $130 million in a Series C funding round led by SoftBank Vision Fund 2, with participation from existing and new strategic investors. This round brings the company’s total funding to over $200 million. The company provides digitalization and automation solutions for utility-scale solar power projects through its platform, which is stated to combine AI, software, automation, SCADA, and project controls.
Catalyze, a project developer and Independent Power Producer of distributed renewable energy assets has <a href="https://mercomcapital.com/renewable-energy-developer-catalyze-secures-400-million-funding/" target="_blank" rel="noopener">secured</a> a $400 million multiyear debt facilityportfolio of commercial and industrial, community solar, and battery storage projects across the U.S.
Energy storage solutions provider AmpereHour Energy <a href="https://www.mercomindia.com/energy-storage-solutions-provider-amperehour-secures-5-million" target="_blank" rel="noopener">secured</a> $5 million (₹415 million) in a Series A funding round led by Avaana Capital, with participation from UC Impower and existing angel investors. The company will utilize the funds to accelerate its battery energy storage solutions deployment, enhance manufacturing capabilities, expand product offerings, and strengthen research and development efforts.
Amrut Energy, a solar water pump manufacturer and renewable energy solutions provider, <a href="https://www.mercomindia.com/amrut-energy-raises-%E2%82%B91-billion-to-expand-solar-water-pump-manufacturing" target="_blank" rel="noopener">secured</a> ₹1 billion (~$11.49 million) in funding from private equity investors. The company aims to utilize the investment to expand manufacturing capabilities, drive research and development, and scale operations across underserved regions.
Solar power systems company SWELECT Group <a href="https://www.mercomindia.com/swelect-raises-%E2%82%B92-9-billion-through-private-placement-with-india-infradebt" target="_blank" rel="noopener">secured</a> ₹2.9 billion (~$33.39 million) in funding through non-convertible debentures via a private placement with India Infradebt. This initiative, backed by a portion of its solar power assets, has released ₹2.6 billion (~$29.94 million) in cash collaterals. The funds will be reinvested to expand SWELECT’s independent power producer portfolio to 1 GW by 2026-27.
JSW Neo Energy, a wholly owned subsidiary of JSW Energy, <a href="https://www.mercomindia.com/jsw-neo-acquires-renewable-energy-firm-virya-infrapower-for-%E2%82%B975-4-million" target="_blank" rel="noopener">acquired</a> a 100% share in Virya Infrapower for ₹75.4 million (~$866,000) in an all-cash transaction. The acquisition was completed on March 12, 2025, the same day the share purchase agreement was signed. This purchase makes Virya Infrapower a step-down subsidiary of JSW Energy.
For reports and trackers on funding and M&amp;A transactions in solar, energy storage, and smart grid sectors, click <a href="https://mercomcapital.com/clean-energy-reports/" target="_blank" rel="noopener">here</a>.
Read last week’s funding <a href="https://mercomcapital.com/funding-and-ma-roundup-tandem-pv-raises-50-million/" target="_blank" rel="noopener">roundup</a>.

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