Government may provide $2.5 billion in incentives for promoting local production of grid scale batteries

28 Sep 2022 , 09:22 AM

The power ministry of India is putting out a roughly $2.5 billion incentive scheme to promote local production of grid-scale batteries, with the goal of lowering the cost of energy storage to hasten the country’s energy transition.

According to power minister Raj Kumar Singh, there are preliminary conversations within the government about providing incentives to battery makers for the number of batteries they create over a specified time period. According to him, the total payoff might be in the neighborhood of 200 billion rupees.

In order to ensure supply of the battery metal, the US is in discussions with nations like Australia, he added, concerned about competitor China’s dominance in the sector. Additionally, India intends to advance different battery technologies.

Reduced storage costs will be essential to provide continuous renewable energy from intermittent renewable sources like wind and solar. India is placing a high priority on energy security upto time. It has plans to increase the size of its coal power fleet by 25% by 2030, barring the development of more affordable storage.

Large Indian corporations have pledged to spend billions of dollars on energy storage, notably the Adani Group and Reliance Industries Ltd. The government intends to require developers to include energy storage with upcoming wind and solar projects in order to increase capacity.

“I’m increasing storage space since doing so will lower prices. The expenses will decrease as sufficient volumes begin to be added, according to Singh. I won’t compromise on the availability of energy for our people and the expansion of our economy.

The battery strategy would adhere to the guidelines set forth by Prime Minister Narendra Modi’s Make In India program. In order to lessen reliance on imports and generate employment locally, the government has provided financial incentives to promote domestic production of everything from solar panels to vehicle batteries and electronics products.

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