At a time when there is a growing push towards renewable energy, even traditional energy companies are scouting for opportunities in this space. On Wednesday, state-owned oil explorer Oil and Natural Gas Corp and Tata Power's renewable energy arm have entered into a non-binding memorandum of understanding to explore collaborative opportunities in the battery energy storage systems value chain.
The partnership aims to explore a range of applications in the battery energy storage space. This includes utility-scale energy storage systems, grid stabilisation and ancillary services, renewable energy integration and hybrid solutions, industrial and commercial energy storage applications, microgrid and backup power solutions and electric vehicle charging infrastructure.
"This collaboration with Tata Power Renewable Energy Limited represents a strategic step towards strengthening energy storage capabilities, which are vital for grid stability and renewable energy adoption. By leveraging our collective expertise, we aim to contribute meaningfully to India’s energy transition and long-term energy security," said Arun Kumar Singh, chairman and CEO of ONGC.
State-owned ONGC is India's largest crude oil producer, accounting for almost 71 per cent of the country's domestic production. On the other hand, Tata Power is among the leading private sector power companies, with a diversified portfolio of over 14,453 MW, spanning renewable and conventional energy generation, transmission and distribution, storage solutions and solar cells, and module manufacturing.
"Battery energy storage systems will play a crucial role in strengthening grid reliability, enabling greater renewable energy integration, and supporting India’s ambitious clean energy goals. Together with ONGC, we aim to develop innovative storage solutions that will pave the way for a sustainable and resilient energy future," said Deepesh Nanda, CEO and MD of Tata Power Renewable Energy.
India has set the ambitious target of achieving 500 GW of non-fossil fuel-based energy capacity by 2030. It is estimated that the battery energy storage systems market will touch $5.3 billion by 2030 from $481.5 million in 2023, according to Energy Central.
