Hyderabad Pilot Shows Battery Storage Cutting Energy Costs

A first-of-its-kind battery energy storage system deployed by Singareni Collieries Company Ltd (SCCL) in the Mandamarri mining region of Telangana is beginning to reshape how large industrial campuses manage and retain the value of their renewable energy. The 1 MW unit, installed as a companion to the company’s 28 MW solar plant, has helped SCCL save more than ₹26 lakh within four months by capturing excess daytime solar power that would otherwise be exported to the grid without compensation.

SCCL operates over 245 MW of solar assets across eight sites to reduce its reliance on carbon-intensive grid electricity. However, current regulations prevent the company from being paid for surplus solar power generated by its in-house plants, leaving significant daily output unused from a financial standpoint. This gap has long undercut the economics of renewable adoption for many industrial consumers, particularly in sectors like mining where operations run round the clock and energy demand fluctuates throughout the day. The newly introduced battery storage system attempts to close this policy and operational loophole. By storing nearly 3.35 lakh units of excess solar power over four months, SCCL was able to use its own renewable energy during the night — its period of peak electricity consumption — instead of depending on the grid. The result is not only direct cost savings but also a more consistent utilisation of its renewable infrastructure, which improves the return on investment and reduces exposure to grid-based emissions.

Beyond the immediate financial benefits, the pilot reflects a deeper shift underway in India’s industrial energy landscape. Battery storage is becoming a practical tool for ensuring that clean power remains accessible even when the sun isn’t shining. For an energy-intensive sector like mining, which typically struggles with high carbon footprints and grid dependencies, this technology supports a transition toward more resilient and environmentally responsible operations. The experiment at Mandamarri also points to the policy shortcomings surrounding surplus renewable energy. Without mechanisms to compensate industrial facilities for the clean power they produce but cannot use in real time, firms have little incentive to expand solar capacity or invest in additional clean technologies. Storage offers a workaround, but the broader policy environment will eventually need reform to support India’s push toward decarbonisation.

If similar systems were installed across SCCL’s other solar-equipped sites, the cumulative impact on cost reduction, emissions avoidance, and grid stability could be substantial. It may even serve as a model for other public-sector companies, city utilities, and industrial clusters facing the same dilemma — abundant solar potential, but limited means to capture its full value. While still in its early stages, the Mandamarri initiative signals a promising path: one where renewable energy is not merely generated but fully utilised, aligning with the long-term vision of building low-carbon, efficient, and climate-resilient industrial ecosystems across India.

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Hyderabad Pilot Shows Battery Storage Cutting Energy Costs