Policy framework to accelerate ES deployment in India

Industry Reports

India is forecasted to account for 40% of the world’s additional energy demand by 2040 and plans to meet a large majority of this growing energy demand from renewable energy sources. Energy storage is vital for managing the expected supply and demand variability increase.

The Government of India is in the early stages of shaping the policy and regulatory framework for energy storage in the country. This brief collates inputs from businesses on ways to strengthen the framework and policy measures.

Developed in collaboration with World Business Council for Sustainable Development (WBCSD), the brief presents the collective policy and regulatory recommendations from over 25 companies on priority action areas for the central government to accelerate energy storage deployment.

Related information you may be interested in.

India Stationary BTM ES & Railway Battery Market 2023-2032

India's Behind-The-Meter (BTM) energy storage market, currently at 33 GWh in 2023, is poised for significant expansion, with projections indicating growth to over 44 GWh by 2032. This upsurge is primarily driven by the demand in the telecom and UPS sectors. Central to this growth narrative is the rising adoption of lithium-ion technology, marking a pivotal shift from traditional lead-acid batteries. Key Trends in the market: BTM Storage market is driven by the power reliability issues faced by the electricity consumers in the country. The majority of the battery applications here are for power backup e.g.: inverters, UPS, Telecom towers, and off-grid solar. Lead acid batteries dominate all the key market segments of BTM. LiB penetration is highest in the telecom sector (up to 60%) presently, it is expected to be the largest contributor till 2032. Other technologies likely to enter this market are Sodium –ion, Vanadium flow, Zinc Bromide and Aluminum Air batteries. The UPS segment is poised for increased demand in Li-ion chemistry driven by the booming data center market. Pushed by a need for low footprint, longer operational life solutions, LiB demand in UPS sector stood at 1500 MW in 2023, with a projected 10% CAGR from 2023 to 2032. The rooftop solar battery market, with 2 GWh of installations, is steadily growing at 7%. There was a trend towards li-ion batteries in 2023, primarily in the C&I segment for niche and tailored applications. Several players are planning to enter lithium battery manufacturing in the country namely Exide Industries, Reliance New Energy, Amararaja, Livguard and others, with capacities ranging from 1 GWh to 20 GWh. This contains both EV and stationary pack suppliers. There are over 30+ notable pack assemblers for li-ion batteries across Gurgaon, Noida, Gujarat, Maharashtra, Delhi, Himachal Pradesh, Tamil Nadu, and Telangana. As the market matures, the adoption of lithium-ion batteries is expected to increase beyond niche applications to more widespread use in commercial, and industrial energy storage systems. This transition is facilitated by the declining cost curve of lithium-ion technology, making it increasingly competitive against traditional storage solutions. Key Battery Suppliers to BTM Applications What is covered in the report? Annual energy storage market demand (GWh) in BTM, railway segment, rural and de-centralised installations and how it has changed from 2022 to 2023. Market forecast (GWh) by applications till 2032 – rooftop solar + storage, telecom tower back up, inverter battery backup, UPS battery backup, energy storage for decentralised and rural electrification, and railway application. Key players and their market shares in lead-acid battery market for BTM application Key players in the lithium-ion and other advanced chemistry battery market for BTM applications. Price -trend of Lithium-ion battery packs till 2032.

Emerging Technology Review(ETR) for E-mobility Edition 2

The world is undergoing an immense transition in one of the most key aspects governing our lives. It is in the generation, availability and use of energy which supports all dimensions of our existence. Food production, processing and delivery, infrastructure development, clothing industry, transportation, healthcare and any other activity crucial for our sustenance depends on energy. Over time we have become used to depending on fossil fuels for providing us this key supporting ingredient. It is this core enabler, which is undergoing transition. This transition has been made possible, in part due to the development of advanced technologies for energy storage and conversion. In this series of 4 reports, we attempt to cover all the major technologies which are either currently commercially available or those which are in the late development stages and will be commercially manufactured at scale in the next 3-5 years. All technologies for energy storage and conversion are constantly evolving and improving in performance owing to the ongoing efforts of the global academic and industrial community. In the current report which is the first in this series of reports, we cover all the technologies which are of interest for e-mobility applications. These applications can range from small personal transportation devices such as Segways and hoverboards to heavy duty vehicles such as trucks, trains and medium sized boats. We wish that through this report we are able to provide specific and to-the-point information to a wide range of audience who are interested in learning about these new technologies. The review is prepared keeping in mind that the readers may be from very different backgrounds and we hope that the concepts and information presented will help all decisions makers from industry as well as from the government. Table of Contents Motivation and Objectives of this Technology Review Executive Summary Classification of Applications for Mobility Electric vehicles (2W, 3W, 4W, Trucks and Buses) Long distance Transportation (small/medium sized boats, inter and intra city trains) Alternate mobility devices (bicycles, Segway, unicycles, drones, UAVs and hoverboards) Application specific requirements of Energy Storage Technologies Existing Technologies and major manufacturers of Storage for Mobility Applications Li-ion batteries Expected improvements in 3-5 years High voltage cathodes, high capacity anodes, high performance electrolytes, Li-S batteries Next Generation Technologies – Part I: Solid state batteries Construction and design Classification of SSBs Major OEM investments in SSB startups Product offerings of prominent SSB companies (Solid Energy, Solid Power, Prologium, Blue solutions, Sion Power) Next Generation Technologies – Part II: PEM Fuel Cells Comparison of Fuel Cell Technologies Green Hydrogen on-site Production: Electrolyzers Ongoing technological and manufacturing challenges PEMFCs for 4W, heavy vehicles and trains Key questions the report answers Which technologies are suitable for e-mobility applications and what improvements can be expected in the next 3-5 years? Which technologies are on the horizon and will be commercially manufactured an available soon? How are these technologies superior in performance to existing storage solutions? Which Solid state battery companies are at the forefront of developing new technologies? What are the recent developments and PEM fuel cells for e-mobility and which applications will they enter in the next 3-5 years?

India Electric Vehicle Market Overview Report 2023

India Electric Vehicle Market Overview 2022 & 2023 EV sales in India were recorded at 1.3 million for 2022, and are expected to touch 1.7 million units by the end of 2023 according to IESA’s projection as per business-as-usual scenario. EV market in India is expected to witness CAGR of 35% from 2023 to 2032 under business-as-usual scenario. The report covers market estimates and forecasts for India EV market by vehicle segments i.e. E-2 wheeler, E-3 wheeler, E-4 wheeler, E-bus and E-truck in terms of annual unit sales and annual battery demand (GWh). Factors driving EV market in India include: FAME-II subsidy Entry of large number of OEMs Auto components production liked incentive scheme Major push to replace ICE fleet with EVs However, EV market in India is currently facing challenges such as: High cost of EV Lack of public charging infrastructure Requirement of investment for power grid upgradation Absence of subsidy in some segments State governments in India are taking active steps through their respective EV policies to increase EV adoption, providing demand incentives such as subsidy on new EV purchase, road tax exemption, registration fee exemption, and scrapping and retrofit incentives. Incentives and support under state EV policies are centered around manufacturing, charging infrastructure, R&D, battery recycling, employment generation and skill development. For instance, states such as Tamil Nadu, Haryana, Andhra Pradesh and Uttar Pradesh are providing incentives to encourage investment both, EV manufacturing and component manufacturing, while also looking to aid local EV ecosystem in the state. EV Market Overview, 2022 E-2 wheeler segment witnessed EV sales of around 0.8 million in 2022, owing to low cost and increase in subsidy for this segment from June 2021 to May 2023. Under E-3 wheeler category, low-speed E-rickshaws held a dominant share over high-speed E-3 wheelers. However, new players have entered the high-speed E-3 wheeler category, providing more options to end users. E-4 wheeler adoption in India is driven by requirement of personal mobility and taxi fleet operators. In 2022, personal mobility dominated with around 87% market share, against 13% for fleet operators. However, sales for fleet operators have jumped four-fold in 2022 over 2021 numbers as attractive total cost of ownership prompted players such as Ola and Uber to begin replacing ICE vehicles with EVs. E-bus segment sales have been driven by subsidy available for the category, specifically for government end-use. Convergence Energy Services Ltd acts as the major tendering agency, and is working to deploy 50,000 E-buses under the National Electric Bus Program. E-truck is one of the newer segments in India, and therefore, sales are lowest compared with other EV segments in 2022, owing to limited product offerings by players and absence of subsidy. In terms of battery chemistries, lead acid is utilized for low-speed E-2 wheelers and low-speed E-rickshaws, while lithium-ion battery chemistries such as LFP and NMC are widely utilized in all other EV segments. Other lithium-ion chemistries such as NCA, LTO and LMO have witnessed limited application, with utilization only by certain specific players. Source: CES Analysis Additional Key Points Covered: India EV Market Drivers EV Market Developments by Segments, 2022-32 EV Battery Demand Forecast by Segment Competitive Landscape Total Cost of Ownership Analysis by EV Segments Central Level Policy & Regulations State EV Policies Who Should Buy the Report: Global EV OEMs EV Commercial Fleet Owner Government Agencies State Transport Utilities Financial Institution & Investors

Global ESS Policy Overview Whitepaper

Sustainability and net zero emissions are the most spoken words of the decade in the energy sector. Several nations across the globe have committed to net-zero emissions targets slated to be achieved by the year 2040 to 2070. The goal is to achieve these targets through renewable energy, energy storage, hydrogen, sustainable aviation fuels, modular nuclear, and suitable climate technologies. At the center of decarbonization efforts in the electricity, transportation, and industrial sectors are renewable energy and hydrogen (both blue and green). Due to the intermittent nature of renewable power, a round-the-clock supply of clean electricity necessitates the storage of electricity. Energy storage, therefore, is inevitable for grid electricity supply and stabilization, and for powering the critical technology of electrolyzers used for producing green hydrogen. There are several types of energy storage technologies that are being pilot-tested and adopted across the globe for a variety of applications ranging from electricity generation, transmission, and distribution, to backup at consumer sites. While pumped hydro energy storage has been traditionally used for energy storage and grid flexibilization applications, emerging technologies such as battery energy storage, flywheels, and compressed air storage are also being deployed for various use cases. This whitepaper intends to serve as a reference to regulators, utilities, and energy sector stakeholders to deepen their knowledge of global policies and electricity frameworks for energy storage systems that support the decarbonization of the electric grid.

India SES Market Overview Part I : FTM 2022 - 2030

RE integration to account for the maximum share of FTM energy storage application owing to large capacity tenders being announced by the Central and State agencies. Lithium-ion and pumped hydro are the two dominant ESS technologies being deployed in the country. Battery chemistries such as vanadium redox flow batteries, advanced lead acid batteries, and zinc bromide batteries are currently being tested by OEMs through pilot projects for grid-scale applications. India’s front-of-the-meter energy storage market is expected to witness an annual installation of around 20 GWh by 2030, according to India Stationary Energy Storage Market Overview Part I: Front-Of-The-Meter (FTM) 2022- 2030. Currently, the installed base of BESS for various chemistries in India is around 41 MWh. The report covers FTM energy storage applications for grid-scale renewable energy integration, DISCOM-side integration, and ancillary services. According to the report, the prime factors boosting the FTM energy storage market in India, include India’s ambitious RE targets, supportive government policies, and regulations along with RE tender issuance by government agencies such as Solar Energy Corporation of India (SECI), National Thermal Power Corporation (NTPC), Gujarat Urja Vikas Nigam Limited (GUVNL) and Karnataka State Electricity Board (KSEB). In a major boost to the FTM energy storage market, in March 2022, the Ministry of Power notified new guidelines on the procurement of battery energy storage systems (BESS) and energy storage obligations for DISCOMs. Further, Budget 2023 announced viability gap funding for 4,000 MWh of BESS projects in the country. FTM energy storage installation in India is marred with several challenges such as high capital cost, lack of clarity in the tender documents, and delay in tender issuance and project development. However, initiatives by the central & state government are expected to boost front-of-the-meter ESS projects in the country in the forecast period. Various state governments are further taking active steps to increase FTM energy storage projects by announcing tenders and including energy storage obligations in the state policies. The state of Chhattisgarh, Bihar, Madhya Pradesh, Himachal Pradesh, and Haryana have already set energy storage obligations in addition to renewable purchase obligations for the DISCOMs. FTM Energy Storage Market Overview, 2021-2022 RE integration accounts for a major share of energy storage projects being deployed and under development in the country. Modhera is the first RE integration project completed in the state of Gujarat. Installed in 2021, it comprises 6 MW solar with 7 MW/19.2 MWh of BESS. Companies such as Greenko, JSW Energy, and Ayana Renewables have emerged as winners of energy storage tenders organized by agencies such as SECI, NTPC, and MSEDCL. * *Figure excludes tenders & projects by central agencies such as SECI & NTPC which are PAN India and for which location is not known The DISCOM-side ESS comprises of few kWh to 10 MWh for applications such as peak load shifting, distribution deferral, and energy arbitrage. DISCOMs such as Tata Power DDL, CESC, BYPL, and BSES Rajdhani are some of the companies operating DISCOM-side ESS projects. Tenders have been issued by states DISCOMs of Uttar Pradesh and Haryana. The report acknowledges that the ancillary services market is yet to pick up in India due to a lack of supportive policies and regulations benefiting end users. SECI pilot project of 500 MW/1000MWh standalone BESS to be implemented in Rajasthan had mentioned a specific share of power to be given to NLDC & POSOCO for grid ancillary services. Currently, no ESS project has been deployed specifically for ancillary services applications in the country. Lithium-ion battery energy storage systems (BESS) and pumped hydro have evolved as the two winners in terms of grid-scale tenders. Tenders that require storage of less than 4-hours prefer lithium-ion technology whereas for longer-duration storage, pumped hydro technology has emerged as the preferred choice. New battery chemistries such as vanadium redox flow battery (VRFB), advanced lead acid battery, and zinc bromide battery are being tested by OEMs through pilot projects for grid-scale applications. Source: CES Analysis Additional Key Points Covered: India FTM Energy Storage Market Drivers Central Level Policy & Regulations Detailed State Policy Analysis Energy Storage for RE Integration Market Developments Distribution Utility ESS Integration Market Developments Fast Response Ancillary Services Market Developments Market Estimates & Forecasts (Units, GWh) for 3 scenarios from 2021 – 2030 Key Stakeholders Global Case Studies on FTM Energy Storage Who Should Buy the Report: Project Developers Energy Storage Companies Component & Balance of Plant Companies Utilities & Discoms Independent Power Producer Financial Institution & Investors

Published: 4th Nov 2022

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Policy framework to accelerate ES deployment in India

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