Page 79 - Book_Wec 06-09-SINGLES-Hi-Res

imately ~120 GWh. As per PwC analysis, considering a growth trajec- ment deployment of Li-Ion batteries for reducing diesel consumption.
tory of 20% every year, the energy storage demand for Fy 2030 will While the mainstream market for electric vehicles is yet to take off,
be ~300 GWh according to various estimates over 5,00,000 e-rickshaws are already
on Indian roads in 2-tier cities.
Total market potential for FY 2030 for energy storage Electric vehicles play an important role in integration of renew-
applications able energies into the grid. Negligible charging infrastructure, low-

Category Market Potential (GWh) er ranges and low awareness are the key reasons for the slow-paced
development of e-vehicles in India. The Faster Adoption and Manu-
Electric Vehicles 825
facturing of Electric & hybrid Vehicles in India (FAME) subsidy for
Consumer Electronics 300 EV manufacturers in India under the National Electric Mobility

Stationary Storage 136 Mission Plan (NEMMP) is one of the key reasons for development of
the market.
Total 1261
It is estimated that over 50 GW of installed capacity of Diesel Gener-
ators (DG) in India, consumes over 7 - 9% of the total diesel consump-
Total Battery Storage requirement for medium voltage (MV) is tion in India. Per unit DG, costs are around INR 15 to 40 per kWh (0.21
12095 MWh and for low voltage (LV) grid is 22294 MWh based on es- USD to 0.56 USD), whereas the utility tariff is nearly INR 4 to10 per
timated penetration of solar PV (both ground mounted and rooftop) kWh (0.6 USD to 0.41 USD) for most of the customer categories. This
likely to be connected to the MV and LV grid. 4 provides lucrative opportunity for deploying energy storage technol-
ogies as power backup solution and reducing diesel import burden
Drivers – Policy, Regulatory, Economic for the Indian Government

Policy and regulatory instruments are the biggest drivers towards Financing
mobilizing market penetration for adoption of battery energy storage
solutions. Favourable elements in the form of a stable and long-term Considering the huge market potential, the investment in battery
consistent policy framework, at central level with minimal amend- storage technologies would be enormous and it would be judicious
ments in the support mechanism are necessary so that investors for the government to provide subsidies and concessional tax struc-
can accordingly plan and develop their market entry strategy into ture to the industries involved in R&D and manufacturing of energy
Indian markets. FAME (Faster Adoption and Manufacturing of Electric storage systems. The biggest driver for such investment decision will
& hybrid Vehicles in India) scheme has been an ideal example of a be sustained demand creation.
policy framework, which has assisted in providing the much-need- As estimated in the preceding section, the cumulative energy stor-
ed traction to energy storage, resulting in commercialization of large age demand for Fy 2030 comes out to be 1261 GWh. A crucial aspect,
number of electric vehicles in India. Another fundamental program is which the government needs to work out in near future, is how the
the ‘national mission on transformative mobility and battery storage’, costs of battery technology and lithium ion technology in particular
aiming to boost mobility solutions and developing a competitive do- can be further incentivized to ensure increased uptake. As per BNEF,
5
mestic manufacturing ecosystem with key focus on maximum value average cost of a lithium battery was around USD 176/kWh in Fy 18
being captured in the country. which is estimated to go down to USD 94/kWh by Fy 2024 and can
further come down to USD 62/kWh in 2030 with subsequent improve-
Opportunities ments in technology and supply chain. hence, considering an average
value of USD 100/kWh as the battery price for the entire duration, the
The Indian market is gaining understanding of energy storage tech- total financing requirement in the energy storage application is esti-
nologies and their applications in telecom infrastructure and e-ve- mated to be INR 672,700 Crores (USD 94.87 bn) till Fy 2030.
6
hicles and the stakeholders are interested in setting up GW-scale Major sources of funding will include financing from private play-
energy storage plants. Leading companies have already announce- ers, commercial banks, multilateral and bilateral, injection of FDI in

EnErgising sustainablE & ProsPErous FuturE 65