India is poised to see a tremendous jump in energy storage systems. Thereby reaching a level of 60 GW by 2031-32, representing a 12-fold increase. This would cover everything from cell manufacturing to components. And here’s the good news: the growth will get support from both government initiatives and rising demand, driven by a new report by SBI Capital Markets.
The continued decline in energy storage technology costs is expected to propel this market and make them more affordable. The report also reflects the inability of the energy storage systems to compensate for the mismatch between surplus energy. And the characteristics of power demand with fluctuating features causing the grids to get unstable.
The report recognizes BESS and PSP as the two prime drivers of this change. These technologies will dominate the energy storage market. BESS, especially with flexibility in location, quick response times. And a possibility of cost reduction with the advancement of technology, will be leading the position.
Energy transition is very important for battery storage systems, where the battery and its peripherals account for 80% of the system’s overall cost. The report has mentioned further that India remains highly dependent on supplies from China when it comes to battery cells and components. This positions the country at great risk due to disruption in the supply value chain. Especially in times of geopolitical turmoil.
To that effect, the Indian government has announced a production-linked incentive scheme for promoting the local manufacturing of advanced battery cells. In this way, the country would reduce its import dependence and improve its storage capacity.
It also aims at reducing dependence on fossil fuels by increasing the utilization of renewable energy vectors. A typical example being green hydrogen. It has set ambitious targets of reaching 500 GW of non-fossil electricity capacity by 2030. And generating half of all consumption.
This, in turn, will create India as one of the forerunners in renewable energy. And energy storage in combating climate change with an assurance of energy security.
ANI
