In a recent energy market report, data suggests the energy storage industry will generate a positive 15% CAGR over a five year period. The projected growth within the Indian energy market is closely associated with the rising demand for a stable source of electricity to support a rapidly developing economy.
A stable and efficient source of electricity is essential in developing a prosperous and healthy economy, providing opportunities for infrastructure development.
Providing reliable energy to rural communities
India however, has a large population located within rural regions, lacking access to a reliable source of electricity. Due to this challenge of electrifying rural regions, the demand for further adaption of alternative and off-grid energy technologies has risen.
Diesel generators have traditionally been viewed as a reliable source of energy for rural regions. However, the costs associated with diesel are high and there are numerous environmental issues attached with burning diesel. Energy experts are looking for a cleaner and cost-effective alternative energy sources. It is likely that the solar PV industry will continue to develop rapidly and account for a large portion of the off-grid energy storage market in India. Solar power has become a vital source of energy for rural regions, providing energy to those with limited access to grid power. Enhanced technology and increased alterations of solar systems have made solar more economical and environmentally viable for remote rural regions.
India dominates the energy storage market in Southern Asia, with strong markets in Renewable Energy Integration, Micro-Grids, and Electric Vehicles.
The Indian Energy Storage Alliance (IESA) predicts the market to increase from 100 to 200 GWh over the next five years. IESA believe this expansion will attract huge investments into new technology and put India as one of the leading markets for alternative energy technology.
Government Support for Energy Storage
The lack of clear policy and investment has somewhat held the market back from expanding within India. Energy experts, however, believe that this is changing and the Government is recognizing the importance of the energy storage market for sustainable and efficient development. Policy makers are currently working on the development of a national energy storage mission which includes various policy priorities such as the ‘Mission for Energy Access’ and the ‘National Solar Mission’.
Energy experts highlight that massive investment has gone towards supporting new, alternative technologies such as lithium-ion, zinc-based and sodium-based batteries. Lithium-ion is quickly becoming the most established technology for electric vehicles and grid technology. Further developments within creating super-capacitors and flow batteries are evident in the Indian energy market.
The Indian energy storage market is looking promising and with supporting policies and investment, it is likely India will become one of the leading markets for new technology.
For more information on the energy storage market in India visit the India Energy Storage Alliance.
Source- MINT Selection