4 days ago
Govt plans coordinated approach for battery storage policy frameworks
New Delhi: The ministries of power, new and renewable energy (MNRE), and heavy industries (MHI) may come together for implementing policy measures for battery storage, a key energy transition space, in a coordinated and unified manner, said two people aware of the development.
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The three ministries have so far been working individually on battery storage —the power ministry on charging infrastructure and storage framework, MNRE on 10 GW PLI (production linked incentive scheme) for utility scale batteries and MHI on 40GW of electric vehicle (EV) batteries.
Talks for a coordinated movement are in the initial stage with consultation still underway, one of the persons cited above said.
The move follows slow progress in battery adoption and local manufacturing. To be sure, the absence of coordination between nodal ministries is just one reason for the slow progress. Other reasons include supply chain issues involving China and a lack of domestic technical know-how.
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Further, these ministries have come up with separate incentive schemes, such as a PLI for batteries by the ministry of heavy industries and VGF for large-scale batteries by the power ministry.
In such a scenario, a single window approach and a single nodal agency is expected to give industry players more clarity and uniformity in terms of policies and regulations.
The power ministry is also involved in the regulatory framework for EV charging infrastructure and public sector entities under the ministry. Enterprises under MNRE are involved in the tendering process of battery energy storage projects and battery-integrated renewable energy projects.
"The ministries will work together in coordination going ahead. A mechanism is being worked out for a coordinated approach on the policy front. The modalities are being worked upon," said one of the two people mentioned above.
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The aim is to have a cohesive growth trajectory for battery energy storage solutions. As the energy transition journey moves ahead, batteries would be the backbone of the power grid and the energy system.
Debi Prasad Dash, executive director, Netzero Energy Transition Association (Netra), an industry body, said: 'The plan to work together on battery storage by different government departments is a welcome move. The heavy industries ministry is largely concerned on the supply side, in the manufacturing of batteries. The new & renewable energy ministry and power ministry are involved in demand aggregation for the power sector and renewable energy. Therefore, having a better coordination and collaboration would help in having a demand-supply parity."
Dash, further said that the union ministries for environment and mines are also involved in battery recycling and critical mineral search for indigenous battery manufacturing, respectively, and that they too should be brought on board.
Anand Anupam, chief commercial officer, VFlowTech Pte Ltd, a battery solutions provider, backed the need for a dedicated inter-ministerial framework.
'As India advances its clean energy ambitions, it is imperative to establish a dedicated inter-ministerial framework that aligns regulations, standards, and tax structures across various battery energy storage technologies," Anupam said.
'While countries like China and Australia have made significant progress in incentivizing innovative storage solutions, India must now take a coordinated approach across ministries to stimulate demand for alternative technologies and support local manufacturing. This is crucial to building a resilient and future-ready ecosystem that strengthens national energy security."
MHI launched its ₹18,000-crore PLI scheme for advanced chemical cells (PLI-ACC) in 2021 to expedite domestic manufacturing of batteries. Currently, three companies have been approved for the PLI—Rajesh Exports, Reliance Industries Ltd and Ola Electric Mobility Ltd. But their plans to manufacture cells have faced delays, leading MHI to issue penalties to these companies for missing deadlines.
MHI earlier this year sent notices to these companies over delays in project implementation.
The ministry of power on the other hand came up with a national framework for promoting energy storage systems which talked about both battery storage and pump storage projects. The ₹9,400-crore viability gap funding scheme for utility scale projects is also under the power ministry, which is also responsible for issuing guidelines for charging infrastructure.
Now, with the fall in battery prices globally, the government and industry stakeholders are also looking at ramping up battery manufacturing and adoption across the country.
Industry body India Energy Storage Alliance (IESA) on Monday proposed a policy and regulatory framework to the government for energy storage deployment acceleration in India.
Debmalya Sen, president of IESA said: 'As we stand on the brink of a transformative shift in India's energy landscape, it is important that we foster a robust policy and regulatory framework that accelerates the deployment of energy storage solutions. Our recommendations aim to ensure safety and innovation in energy storage technologies, ensuring a sustainable and secure energy future for all Indians. This will not only enhance grid stability but also propel us towards our ambitious renewable energy targets."
It also suggested that the planning for energy storage systems should be well-integrated with power transmission, distribution, and generation planning in India.
In February, the Central Electricity Authority (CEA), which comes under the power ministry, asked state power utilities and renewable energy implementation agencies to incorporate two-hour co-located energy storage systems, equivalent to 10% of the installed solar project capacity, in future solar tenders, thereby making battery storage mandatory for all upcoming solar projects.
Queries mailed to the ministry of new and renewable energy, power and ministry of heavy industries remained unanswered till press time.
