Fluence is Relying on Bengaluru to Tackle Energy Price Volatility
Energy markets globally experience unprecedented volatility, with prices fluctuating through the day. For instance, in Australia, the cost of electricity can go as high as $17,500 AUD per megawatt-hour during peak demand, to a point where discharging stored battery energy can result in a $1,000 AUD penalty. Clubbed with the challenge of an uneven supply of solar energy, there’s a growing need for a balanced and efficient approach in energy storage. Fluence, a leading energy storage company, addresses this challenge with its AI-driven software. In a recent exclusive interview with AIM, Roman Loosen, SVP and chief business operations and transformation officer, said, “Our AI-drive software predicts these price fluctuations, optimising exactly when to charge and discharge the battery. We are not just managing energy—we are maximising profitability.” Much of the software development powering these innovations is happening in Bengaluru. Bengaluru as the Rising Star for Innovation The decision to establish a global innovation centre (GIC) in Bengaluru was strongly influenced by the availability of talent, Loosen mentioned. “When we talk about technology, almost 50% of our team is deployed here. We have other centres worldwide, but the global team is primarily based here. Specifically, in technology, almost 50% of our workforce is in India,” he noted. Fluence has launched its new product, Smartstack, which the company considers a game-changer in the energy storage industry. “Over the past months, we have seen a trend where competitors offer a standardised battery energy storage solution, typically in a 20-foot container,” Loosen explained. However, he mentioned that this setup has several challenges: it weighs around 50 tonnes, requires a heavy-duty crane for lifting, special permits for transport, and complex servicing requirements. Unlike traditional containerised solutions, Smartstack is designed to be modular. It consists of separate components stacked together, including the Smart Skid and battery pods. This modular design is a result of Fluence’s horizontal integration strategy. The company emphasises that Smartstack lives up to its name because it incorporates advanced intelligence within the system. “This begins with sensors embedded in the system, but it extends further into software and controls.” “Many of our competitors are Chinese companies. Given global concerns around energy security, Fluence ensures that our controls and software are developed outside of China, maintaining transparency and compliance with international regulatory standards,” he added. Fluence’s India operations play a key role in this innovation. This centre is remotely connected to Fluence’s entire installed base, allowing for real-time monitoring and remote interventions if any issues arise. In addition to hardware innovations, Fluence uses two proprietary software solutions. One is an asset management system called Nispera, which provides insights into a customer’s energy infrastructure. The other is a bidding software called Mosaic, which further enhances Smartstack’s capabilities. Reliance on Big Techs Fluence emphasises its proprietary approach to software development for critical applications, while also leveraging major technology providers for broader support. “We are also relying on big tech, basically in the background,” Loosen explained, adding that the company is relying on Microsoft Copilot and AWS, among other providers. However, when it comes to Fluence’s bidding software, ownership is a key priority due to the sensitivity of the data involved. Mosaic runs on Smartstack, Fluence’s battery energy storage solution. Empowering Bengaluru Team and the Ecosystem Loosen highlighted the growing importance of its leadership and decision-making presence in India, particularly for its Smartstack product. “For Smartstack, our product manager is based here, so decision-making happens in India,” he said. “Of course…we still have our headquarters in Arlington, but having decision-makers here is crucial.” Currently, the company is focused on its operations in Bengaluru, with future plans potentially including expansion to other locations in India. Loosen further mentioned that it is essential to define the GIC’s place within its global value chain, which means empowering decision-makers within the GIC. Moreover, Fluence is also focused on building a broader ecosystem around its GIC. “We also want to build an ecosystem around the GIC. By ecosystem, I mean the horizontal integration we discussed earlier, as well as our supply chain,” he said. As part of this strategy, the company is localising its supply chain in India, particularly for its new product, Smartstack. As part of its ecosystem strategy, Fluence is collaborating with local suppliers in India to manufacture its first Smartstack domestically. Loosen compared Fluence’s operational model to that of a leading global tech company. “We follow a model similar to Apple: we own the hardware and product design but work with contract manufacturers for production. This approach allows us to scale rapidly,” he explained. Highlighting the company’s rapid growth, he said, “Fluence has grown significantly in recent years, nearly doubling its volume annually.” Loosen also addressed India’s competitive advantage. “When you talk about competitiveness in India, I think it’s also a very strong part if you bring people from different geographies together. India also has a strong local ecosystem with strong local and global players. Now I’m talking about other companies based here in India.” Highlighting the unique work culture in India, Loosen explained that many people in the country have a strong competitive mindset, always aiming to deliver high-quality and efficient projects. In comparison, he noted that in some parts of the Western world, there can be a greater focus on luxury or added features, while in India, there is often a sharper focus on being lean, practical, and competitive. This approach, he believes, is often stronger in India than in other regions. The Way Ahead Fluence holds the largest installed base of battery energy storage systems in India and has established a joint venture to enhance its market reach. “We have the largest installed base of battery energy storage systems in India. We also established a joint venture to enhance our market reach, which is quite unique,” Loosen said. While he emphasised that the company continuously seeks new opportunities to better serve the Indian market, he also noted, “While India is important, it is not currently among our top markets. Our primary markets include the US, Australia, Germany, and a few other global regions where battery storage plays a critical role.” [Correction: This article and the headline have been revised for clarity.]
“Bengaluru creates a unique talent pool in India that can compete with any other place in the world.”
“Bengaluru creates a unique talent pool in India that can compete with any other place in the world."
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Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.