Premier Energies, RCT India Sign Term Sheet for 12 GWh BESS Factory
Premier Energies' battery subsidiary and RCT India have signed a binding term sheet for a proposed 12 GWh BESS manufacturing facility in Telangana, beginning with a 6 GWh first phase.
Published · 3 min read
Premier Energies’ battery subsidiary has signed a binding term sheet with RCT Energy India to establish a Premier Energies BESS joint venture for a 12 GWh battery energy storage system manufacturing facility in Seetharampur, Telangana. Premier Energies disclosed the agreement to India’s stock exchanges on September 10.
The proposed venture would begin with a 6 GWh manufacturing phase targeted for fiscal 2027-28 and would design, manufacture and sell BESS products for commercial, industrial and utility-scale applications in India and international markets. The filing says Premier Battery Technologies would initially hold 85% of the venture and RCT India 15%, with an option for RCT India to increase its stake to 20%.
The binding term sheet sets the proposed ownership structure
Premier Energies’ September 10 exchange disclosure identifies Premier Battery Technologies, Premier Energies Storage Solutions and RCT Energy India as the parties to the proposed arrangement. The document says the parties intend to execute a shareholders’ agreement and other applicable agreements within 30 days of signing the term sheet.
The disclosure is more specific than a general manufacturing plan. It sets a proposed 85%-15% equity split between Premier Battery Technologies and RCT India, respectively, with RCT holding an option for an additional five percentage points. It also states that the term sheet covers governance, responsibilities and milestone timelines.
Premier Energies’ accompanying press release filed with the exchanges says the facility is intended to serve domestic and export markets. Independent coverage from Mercom India confirmed the 12 GWh plan and 6 GWh first phase.
Manufacturing capacity is not deployed storage capacity
The 12 GWh figure describes proposed annual BESS manufacturing capacity, not a 12 GWh battery project connected to the grid. That distinction matters because factory output capacity measures how much storage equipment a manufacturing platform can produce, while an operating BESS project is measured by the power and energy installed at a particular site.
The Premier Energies BESS joint venture would therefore expand the supply side of India’s storage market rather than add 12 GWh directly to a power system. Premier Energies says the products would target renewable developers, commercial and industrial customers and utility-scale projects.
Microgrid Media has recently reported on India’s shift toward storage-backed renewable procurement, including SECI’s assured peak-power auction, where storage is used to move renewable electricity into defined delivery periods. That type of procurement illustrates the downstream market that domestic BESS manufacturing could ultimately serve.
Premier Energies is expanding beyond solar manufacturing
Premier Energies is primarily an integrated solar manufacturer. Its corporate manufacturing overview lists facilities in Telangana and Andhra Pradesh and describes ongoing expansion across its manufacturing footprint.
The new storage agreement is therefore a diversification step rather than an extension of an existing operating battery factory at the announced scale. RCT’s role, according to the companies, is expected to include engineering experience, energy-sector expertise and international supply-chain capabilities.
The companies have not disclosed the capital cost of the 12 GWh facility, the battery-cell supplier, the precise manufacturing scope, financing arrangements or a commissioning date for the full 12 GWh capacity. The exchange filing targets the first 6 GWh phase for fiscal 2027-28.
What happens next
The binding term sheet is a meaningful transaction milestone, but it is not the same as a completed factory or a final shareholders’ agreement. The next near-term checkpoint is whether the parties execute the definitive agreements contemplated within 30 days.
After that, construction, equipment procurement and commissioning will determine how quickly the Premier Energies BESS joint venture can translate the proposed 12 GWh manufacturing platform into operating production capacity. Until those steps occur, the full capacity and timing remain forward-looking.
Jonas Muthoni is Editor-in-Chief of Microgrid Media, where he oversees reporting and analysis on microgrids, energy storage, distributed energy resources, data center power demand, grid modernization, resilience, renewable energy, and electricity policy and markets. His work focuses on the infrastructure, technologies, and regulatory developments reshaping the power system.
As Editor-in-Chief, Jonas leads Microgrid Media’s editorial strategy and standards, including story selection, source verification, technical accuracy, and the development of original reporting and analysis. His coverage draws on regulatory filings, government records, utility and company disclosures, technical documentation, and independent industry sources to explain significant developments across the evolving energy system.
