India's Battery Energy Storage Capacity to Expand Significantly

Crisil Ratings reports that India's battery energy storage system (BESS) capacity is expected to grow to 45-50 GWh by the next financial year, up from about 1 GWh in the last financial year. This expansion is driven by a strong project pipeline and sustained policy support. The report, which covers bids awarded between fiscal years 2024 and 2026, includes nearly 100 renewable energy developers.

However, approximately 8-9 GWh of awarded capacity faces a higher risk of delays, potentially moderating the deployment pace. About 12 GWh, or 21%, of under-construction BESS capacity, shows weak return potential, which may lead to commissioning delays. This risk stems from increased battery prices in 2026, contrasting with the lower tariffs bid for these projects. Developers typically procure batteries about a year after securing project bids.

Projects awarded in 2025 are now exposed to higher battery prices, which have rebounded from 2025 lows. Developers had bid aggressively, assuming a continued downward trend in battery prices. However, current battery prices may render project returns insufficient to achieve the target internal rate of return of 12-14%. Consequently, developers may defer implementation, anticipating more favorable battery pricing.

Bailong 2 Nuclear Unit Begins Construction with First Concrete Pour

The Bailong nuclear power plant, located in the Guangxi Zhuang Autonomous Region of southern China, has officially begun construction on its second unit, Bailong 2. The first concrete for the unit was poured on December 22, 2025, marking the start of its construction phase. This development means that two units at the Bailong site are now under active construction.

The construction of Phase I, comprising units 1 and 2 of the Bailong plant, received approval from China's State Council in August 2024. State Power Investment Corporation is developing these two CAP1000 pressurized water reactors, which are the Chinese variant of the Westinghouse AP1000 design. The total investment for these two units is estimated at CNY40 billion (USD5.6 billion), with a projected construction period of 56 months.

The initial concrete pour for Bailong 2 involved 6,662 cubic meters of concrete and lasted just over 64 hours. This follows the excavation work for the foundation pit of unit 1's nuclear island, which began in late December 2024. Shanghai Nuclear Engineering Research & Design Institute (SNERDI), a subsidiary of State Power Investment Corporation and a joint general contractor for the project, announced the completion of this critical step.

The Bailong plant, situated on Jiangshan Peninsula in Fangchenggang City, Guangxi Province, is planned to eventually host six units. The total installed capacity for the entire plant is projected to be 8.62 GWe, with an overall investment of approximately CNY120 billion. Each unit in the first phase, utilizing the CAP1000 design, will have a capacity of 1.25 GW. Future phases propose the construction of four larger CAP1400 reactors at the site.

Upon completion and operation, the first phase of the Bailong project is anticipated to generate approximately 20 billion kilowatt-hours of electricity annually. This output is equivalent to an annual reduction of about 6 million tonnes in standard coal consumption and approximately 16 million tonnes in carbon dioxide emissions.

United Kingdom Shifts Focus to Commercial Fusion Industry Development

The fusion energy sector in the United Kingdom is rapidly moving from a research-centric activity to an industrial proposition, according to David Capper, Director of New Nuclear and Fusion Energy at the Department for Energy Security and Net Zero (DESNZ). The government has committed over GBP2.5 billion (USD3.3 billion) across five years to support fusion research and commercialization. This funding includes research and technology programs, specialist facilities, and the development of the Spherical Tokamak for Energy Production (STEP) prototype fusion power plant at West Burton in Nottinghamshire.

The United Kingdom is positioned to develop a fusion industry due to over 60 years of fusion research, public investment, a regulatory framework, and a growing ecosystem of developers, national laboratories, engineering companies, specialist suppliers, universities, and investors. The STEP program aims to develop industrial capability, supply chains, and skills necessary for future commercial fusion plants, in addition to demonstrating fusion technology. Tim Bestwick, CEO of UKAEA, stated that STEP will address technical challenges while establishing engineering, regulatory, manufacturing, and supply-chain capabilities.

Lessons from Fission and Supply Chain Development

Lord Iain McNicol, Chair of the Nuclear Industry Association (NIA), highlighted that the established fission industry in the United Kingdom offers valuable experience for fusion's commercial deployment. While fusion is a distinct technology, there are significant overlaps between the two industries. McNicol emphasized the importance of developing commercial frameworks for new projects before financing is required and establishing supply chains prior to construction.

Fusion projects will require capabilities in advanced materials, high-temperature superconducting magnets, precision manufacturing, digital engineering, fuel-cycle technologies, and complex systems integration. The NIA represents over 300 companies in the United Kingdom's nuclear supply chain, many of which possess relevant skills and experience for fusion projects, including the delivery of safety-critical infrastructure and complex programs.

The availability of skilled workers is critical for industry development. The government anticipates its fusion program will support over 10,000 jobs by 2030 and train more than 2,000 individuals in fusion-related disciplines. The government aims to attract international companies and investors to the United Kingdom and encourage existing engineering and manufacturing businesses to engage with the emerging commercial fusion market. This requires progress in skills, regulation, finance, sites, and international partnerships alongside technological development.