India’s Promising Energy Storage Market
Mahesh Babu
Read more about how energy storage could be the next big thing in India, and how EVs could play a big part in it.

This article, originally written by Mahesh Babu, CEO of Mahindra Electric, is part of ‘Battery Storage: The Next Big Energy Frontier’, a study published by FICCI:

Electrical energy storage is potentially the next big industry in India and is expected to witness an exponential growth in the next two decades. Some estimates also say that world’s electrical energy storage market is expected to double between now and 2030. 50% of this is expected to be installed in USA, Japan and India alone.

There can’t be a better time for the energy storage market to grow, given our own country’s fast growing demand for energy and heavy dependency on fossil fuels to fulfil it. Oil import bills and severe pollution crisis are compelling people to evaluate cleaner sources of energy for which energy storage will be a key component. We are on track to achieve a target addition of 175 GW of renewable energy installed capacity by 2022.

The Indian government has also taken on an ambitious target of adding 450 GW (equivalent of charging 21 million electric cars) of renewable energy in terms of installed capacity by 2030.

India’s policy on adopting electric vehicles in the next decade has the potential to create a $300 billion market for EV batteries says a study done by Niti Aayog and RMI. Assuming 30% penetration of EVs by 2030, the additional demand from EVs will be just 4-5% of the overall electricity demand and this can be supported by adding renewable sources to the grid and making electric vehicles truly ‘green’.

In addition, Indian government’s Phased Manufacturing Program will see India becoming a global hub for electric vehicles and this will include battery manufacturing. With the rise in demand for EVs, the cost of batteries is expected to further reduce significantly. Many private and public enterprises are already working towards development of EV components and charging solutions to accelerate the adoption of ‘made in India’ EV components. A lot of start-ups are also coming up with innovative energy storage solutions. Start-ups and their ideas are essential for a nascent industry like energy storage. Start-ups can work with mature organizations to take their ideas to scale.

It’s just matter of time for global cell manufacturers to enter India. We are already witnessing several companies assembling modules and Li-Ion pack in India. With appropriate policy support and through the Make in India initiative, India will take on the likes of China, Germany, USA, Taiwan and South Korea in Li-Ion manufacturing.

The EV industry alone will make India a lucrative field for used batteries which have the potential to be used in second life application as energy storage. The India Energy Storage Alliance (IESA) expects India to have over 300 GWh of energy storage opportunity within the country by 2025, making it one of the highest in the world. This note only makes for a compelling business case but also a great sustainability initiative for organisations to explore.

Mahesh Babu
CEO, Mahindra Electric
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