SPML Infra Share Price In Focus After Its Partnership With US-Based Energy Vault

SPML Infra Limited share price is in focus after its decision to establish a licensing and royalty agreement with Energy Vault. Energy Vault is a well-known company specialising in energy storage solutions. This agreement marks a significant step for SPML Infra into the energy infrastructure sector.

Details of SPML’s Licensing Agreement

SPML Infra will be responsible for manufacturing and deploying Energy Vault’s B-Vault Battery Energy Storage Technology Platform in the Indian market. The agreement spans 10 years and covers over 30 GWh of energy storage. This partnership is expected to accelerate the adoption of Energy Vault’s B-VAULT BESS technology.

Production and Market Strategy

SPML Infra and Energy Vault have established initial production targets. They aim to produce a minimum of 500 MWh of battery storage within the next 12 months.

Over the following 10 years, the targeted minimum BESS volume is 30-40+ GWh. This collaboration will leverage the cost benefits of local manufacturing. It will also utilise SPML Infra’s existing expertise in the Indian market. The agreement includes upfront licensing fees for Energy Vault and recurring royalty revenue streams.

Energy Vault’s B-Vault Technology

The B-Vault system is designed to meet short to medium-duration energy storage needs. It is a fully integrated suite of battery energy storage solutions. The system emphasises reliability, flexibility, and availability. Its innovative enclosure design allows customers to choose from various battery and inverter suppliers.

B-Vault offers both AC-coupled and DC-coupled configurations, providing flexibility for different projects. The technology includes advanced safety and cybersecurity features. It also natively integrates with Energy Vault’s VaultOS EMS. B-Vault aims to provide competitive project pricing to meet customer requirements.

Growth of India’s Energy Storage Market

According to the National Electricity Plan (NEP) 2023 by the Central Electricity Authority (CEA), India’s energy storage capacity requirement is projected to be 236.2 GWh by 2031-32. The estimated market size for this is approximately $57 billion. By 2047, the market is expected to reach $443 billion. Based on news reports, the energy storage market in India is projected to grow at a CAGR of over 25% until 2035. This growth is anticipated due to increasing demand for energy storage. Government policies mandating at least 10% battery energy storage capacity for new solar and wind power projects are also driving this growth.

Conclusion

The collaboration between SPML Infra and Energy Vault represents a significant advancement for the energy storage landscape in India. By combining Energy Vault’s advanced technology with SPML Infra’s local market understanding, this agreement is poised to accelerate the manufacturing and deployment of critical battery storage solutions, thereby supporting India’s expanding renewable energy sector.

At 12.04 PM, SPML Infra share price was up 5% and was trading at ₹175.80.

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