Premier Energies Plans 12 GWh BESS Manufacturing JV With German RCT Group, First 6 GWh Phase Targeted for FY28
Premier Energies Limited (NSE: PREMIERENE, BSE: 544238) is expanding into battery energy storage with plans to establish a strategic joint venture for Battery Energy Storage System (BESS) manufacturing in India.
The company’s wholly owned subsidiary, Premier Battery Technologies Private Limited (PBTPL), has entered into a binding Term Sheet with RCT Energy India Private Limited, part of Germany-based RCT Group, for setting up Premier Energies Storage Solutions Private Limited (PESSPL).
The proposed joint venture will establish a 12 GWh BESS manufacturing facility at Seetharampur, Telangana, with the first phase of 6 GWh expected to be set up in FY27-28.
Premier Energies Enters BESS Manufacturing
The proposed joint venture will focus on the design, manufacture and sale of Battery Energy Storage Systems for both Indian and international markets.
The facility is expected to serve a broad range of applications spanning:
- Commercial
- Industrial
- Utility-scale energy storage
The move gives Premier Energies exposure to a rapidly developing energy-storage segment alongside its existing renewable-energy manufacturing operations.
12 GWh Manufacturing Facility Planned in Telangana
The proposed manufacturing facility is planned at Seetharampur, Telangana.
The overall project is designed for a capacity of 12 GWh, with the company planning to establish the first 6 GWh phase in FY27-28.
For investors, the phased approach is important because it allows the company to establish initial manufacturing capacity before potentially scaling the facility further.
The company has not disclosed the total project cost or capex requirement for the BESS facility in this Term Sheet announcement.
German RCT Group Joins as Strategic Partner
The joint venture brings in RCT Energy India Private Limited, which is part of RCT Group, Germany.
Premier Battery Technologies is expected to hold 85% of PESSPL, while RCT India will initially hold 15%, subject to phased implementation and applicable laws.
RCT India will also have an option to increase its stake by an additional 5%.
If that option is exercised, the proposed ownership could become:
Premier Battery Technologies: 80%
RCT Energy India: 20%
The joint venture structure therefore keeps Premier Energies as the majority shareholder while bringing in an international strategic partner.
Shareholders’ Agreement Expected Within 30 Days
The parties have agreed to endeavour to execute the applicable definitive agreements, including a Shareholders’ Agreement, within 30 days from signing of the Term Sheet.
The Term Sheet also covers the proposed governance framework, board composition, roles and responsibilities of the parties and timelines for various milestones.
This means the current announcement represents an important strategic step, but the final structure and implementation will still depend on execution of the definitive agreements.
BESS Could Become a New Growth Engine
Battery Energy Storage Systems are becoming increasingly important as renewable-energy generation expands.
Solar and wind generation can fluctuate depending on weather conditions and time of day. Energy storage can help balance supply and demand, improve grid flexibility and support electricity availability when renewable generation is lower.
For Premier Energies, entering BESS manufacturing could therefore complement its existing solar business and create an additional growth opportunity.
The proposed facility could eventually enable the company to participate in both domestic and international energy-storage markets.
Why the Expansion Matters for Premier Energies Investors
The proposed BESS joint venture is strategically significant because it adds a new manufacturing vertical beyond conventional solar-module and renewable-energy equipment opportunities.
The main investor takeaways are:
12 GWh – planned total BESS manufacturing capacity
6 GWh – first phase targeted for FY27-28
Seetharampur, Telangana – proposed manufacturing location
85% – proposed initial stake of Premier Battery Technologies
15% – proposed initial stake of RCT Energy India
Up to 20% – potential RCT India stake after exercising the additional 5% option
RCT Group, Germany – strategic partner
India and international markets – target markets
No Related-Party Transaction
Premier Energies said that neither the company nor PBTPL, PESSPL or any group entity currently holds a stake in RCT India.
The parties are also not related to the promoter or promoter group, and the transaction does not fall under a related-party transaction.
This provides clarity on the structure of the proposed joint venture.
What Is Not Yet Disclosed
Investors should note that several important commercial details are still unavailable.
The company has not disclosed:
Total project capex
Financing structure
Expected annual revenue from the facility
Production start date beyond the first-phase FY27-28 target
Expected margins
Order book or customer contracts linked to the facility
These details will become important as the joint venture moves from the Term Sheet stage to definitive agreements and project execution.
Management’s BESS Expansion Strategy
The joint venture is aligned with Premier Energies’ broader strategy of expanding its renewable-energy capabilities.
By combining Premier Energies’ manufacturing and market presence with RCT Group’s international expertise, the company aims to develop BESS products for commercial, industrial and utility-scale customers.
The ability to manufacture energy-storage systems locally could also position the company to participate in the growing demand for grid-scale storage associated with India’s renewable-energy expansion.
Key Milestones Ahead
Investors should watch the next steps closely.
The immediate milestone is the proposed execution of definitive agreements, including the Shareholders’ Agreement, within 30 days of the September 10, 2026 Term Sheet.
Beyond that, the important developments will be:
Final JV shareholding structure
Project capex announcement
Equipment and technology details
Construction progress
First-phase commissioning timeline
Customer/order announcements
Expansion from 6 GWh to 12 GWh
Premier Energies BESS JV: Investor Takeaway
Premier Energies’ proposed 12 GWh BESS manufacturing joint venture with Germany’s RCT Group marks a significant diversification into the energy-storage market.
The first 6 GWh phase is expected to be established in FY27-28, creating a new manufacturing platform at Seetharampur, Telangana.
The proposed 85:15 ownership structure, with an option for RCT India to increase its stake to 20%, allows Premier Energies to retain majority control while gaining access to an international strategic partner.
For investors, the opportunity is potentially significant, but the next stage is critical. Project cost, financing, customer wins, manufacturing timelines and eventual capacity utilisation will determine whether the BESS initiative becomes a meaningful contributor to Premier Energies’ future growth.
Disclaimer: This article is based on Premier Energies Limited’s stock-exchange disclosure dated September 10, 2026. The proposed joint venture and manufacturing facility are subject to definitive agreements, applicable approvals and execution. Project cost, financial contribution and future profitability have not been disclosed. This article is for informational purposes only and should not be considered investment advice. Investments in securities are subject to market risks.