The
India Battery Energy Storage Systems Market is predicted to grow during the
forecast period 2025-2029F, owing to various driving factors, such as rising
demand for continuous electricity, increasing investment in renewable energy,
and the union government's focus on increasing adoption of EVs compared to
petrol and diesel vehicles, among others.
Battery
storage, or a battery energy storage system (BESS), is used to store energy
from renewables, including solar and wind, and then utilize it when power is
required. Additionally, with the help of green energy, battery storage
technology plays an important role in providing power in homes and offices.
National grid and electricity grid engineers focus on matching the supply of
power with demand and managing peaks and troughs, which becomes more
challenging when the target is to achieve net carbon emissions by the end of
2040. Furthermore, while fossil fuel-fired plants are used to control peaks and
troughs, battery energy storage system can gradually replace a portion of
peaking power generators over time.
There
is a growing requirement for energy backup due to the rising demand for
uninterrupted power supply across the country. In the case of power outages,
batteries serve as a backup power source. The rechargeable and scalable
features of batteries are the two major advantages. The need for a reliable
supply has increased, necessitating a growing need for energy backup across the
country. Batteries are provided as backup power sources during power
interruptions or periods of heavy demand.
Grid
integration of large-scale variable renewables is one of India's biggest
challenges as it aspires to decarbonize its power economy through the
deployment of 450 gigawatts (GW) of renewable energy (RE) by 2030. Reaching
this target from the current installed renewable capacity of 93GW is
anticipated to require average annual renewable capacity additions of ~35GW.
According to
the 2021 report outlook, the International Energy Agency's (IEA) proposes that
India is anticipated to double its renewable capacity to 900 GW by the end of
2040. Additionally, renewables in India are now extremely cost-competitive with
coal-fired power and are set to be the dominant source of power supply with
record low solar tariffs below USD27/MWh. Currently, renewables account for 10%
of India's total power generation, and that share is likely to rise to 31% by
the end of 2030 with 450GW coming online.
Rising
Demand for Energy Storage in India
India has decided to
increase its share of non-fossil fuel-based generation sources to 40% by the
end of 2030, which necessitates a rise in the demand for flexibility in power
systems in the upcoming years. The joint initiatives between the Government of
India and state governments, named 'Power for All,' target 24x7 electricity for
all by 2019, creating an increase in power requirements and a need to balance
the supply and demand of electricity across the country. Energy storage systems
play a vital role in increasing the system's overall flexibility by serving
multiple grid applications. Additionally, recent developments and investments
in the electric vehicle (EV) sector, along with ambitious targets, only
increase the demand for energy storage systems.
In India, the electric
vehicle (EV) market is projected to reach around USD7.09 billion by the end of
2025. Recently, research by the Council on Energy, Environment, and Water
(CEEW) Centre for Energy Finance recognized an expected USD206 billion investments
for the enhancement of electric vehicles in India by 2030. Additionally, around
USD180 billion of investment is expected to be required in the upcoming years
for vehicle manufacturing and charging infrastructure.
According to NITI Aayog and
the Rocky Mountain Institute (RMI), India's EV finance industry is likely to
reach USD50 billion by 2030. A report by the "India Energy Storage
Alliance" estimated that the electric vehicle market in India is likely to
increase at a CAGR of 36% until 2026. In addition, the projection for the EV
battery market is expected to expand at a CAGR of 30% during the same period.
The energy storage market
in India witnessed a demand of 23 GWh in 2018, with 56% of the battery demand
coming from the power backup inverter segment. During 2019-2025, the cumulative
potential for energy storage in behind-the-meter and grid-side applications is
estimated to be close to 190 GWh by the India Energy Storage Alliance.
Therefore, the above-mentioned factors are likely to propel the market for
battery energy storage systems in the upcoming years.
National Policy for
Lithium-ion Battery in the Country
There are various types of
batteries, including lead-acid battery, lithium-ion battery, nickel-metal
battery, hydride battery, nickel-cadmium battery, nickel-zinc battery, flow
battery, among others, available in the Indian market. India is taking measures
to become a leader in the lithium-ion battery market. That's why the Indian
government has proposed to set up a National Mission on Transformative Mobility
and Battery Storage to implement the National Policy on Electric Mobility and
the National Policy on Battery Storage, as well as to develop a roadmap for the
manufacturing of lithium-ion batteries in India.
Additionally, the government
has announced the setting up of a National Centre for Advanced Lithium-Ion
Battery Storage (NCALB) across the country. This is expected to be a research
and development center dedicated to the development and deployment of advanced
lithium-ion battery storage solutions.
Furthermore, the union
government has also set up the National Programme on Advanced Energy Storage
Technologies (NPES). This program involves setting up pilot projects to
demonstrate the potential of advanced energy storage technologies and the
development of national standards and certification processes for producing and
deploying these technologies.
Also, the union government
announced the setting up of a National Research Center on Lithium-Ion Batteries
and Energy Storage (NRC-LIBEST). This center focuses on research on lithium-ion
batteries and energy storage technologies and works towards developing advanced
lithium-ion battery and energy storage solutions for India.
Challenges: Energy Storage
Sector Faces Supply Chain Issues
India’s renewable energy
growth strategies are tied to energy storage to mitigate the intermittency of
renewable sources as the nation struggles to meet the increasing
round-the-clock (RTC) clean energy demand. Currently, India has installed a
record 10 GW of solar power in the first nine months (January to September) of
2022 alone, bringing the aggregate capacity up to 60 GW. Also, as of September
2022, the country has installed a cumulative wind energy capacity of
approximately 42 GW. The energy storage systems serve a dual function,
including storing and supplying RTC power, and maintaining grid stability by
ensuring controlled power injection into the grid.
Although energy storage in
India is still in the initial stages of development, investors in the storage
sector are optimistic about the way forward and expect the rapid adoption of
storage systems with the support of the government. Therefore, to address the
supply chain challenges, a significant investment in upgrading the transmission
network is required, as well as expanding the renewable energy portfolio with a
large capacity. Additionally, the short gestation period of solar and wind
projects and the longer gestation period in transmission development pose
another challenge in the battery energy storage systems market. The immediate
solution to these challenges is to deploy BESS/storage.
Recent Developments:
- In February
2023, data released by the Council on Energy, Environment, and Water (CEEW)
stated that the Indian government needs an investment of approximately USD4.5
billion to achieve the government’s PLI target of setting up 50 GWh of
lithium-ion battery manufacturing plants across the country. Additionally,
according to the economic survey 2022-23, the electric vehicle market in India
is expected to reach annual sales of 1 crore units by the end of 2030.
- In August
2022, Norfund, which manages the Norwegian Climate Investment Fund, and KLP,
Norway’s biggest pension company, signed an agreement to buy a 49% share of a
420 MW solar power plant in Rajasthan for USD35.05 million.
- In September
2022, the Union government of India has recently signed agreements with three
companies for incentives under its Production-Linked Incentive (PLI) Scheme for
Advanced Chemistry Cell (ACC) Battery Storage to increase the demand for
battery cells and packs. These companies are Reliance New Energy Limited, Ola
Electric Mobility Private Limited, and Rajesh Exports Limited. These companies
are set to receive incentives worth USD2,172 million under the program.
Additionally, it is estimated that EV battery demand in India is expected to
rise by 15 GWh by the end of 2025 and 60 GWh by the end of 2030.
Market
Segmentation
The India Battery Energy Storage Systems Market is segmented
into battery type, connection type, application, end user, region, and
competitive landscape. Based on battery type, the market is divided into
lithium-ion, advanced lead-acid, Flow Batteries and Others. Based on connection
type, the market is divided into on-grid and off-grid. Based on application,
the market is divided into front of the meter, and behind the meter. Based on
end user, the market is divided into commercial, industrial, and residential.
Based on region the market is divided into North India, South India, West India. and East India.
Company Profiles
AES India
Engineering Limited, Exide Industries Ltd, Delta Electronics India Private
Limited, Toshiba India Private Limited, Amara Raja Batteries Ltd, Panasonic
Corporation, HBL Power Systems Ltd, Schneider Electric India Pvt Ltd, Siemens Ltd,
among
others, are the major players that are driving the growth of the India battery energy
storage systems market.
Download Free Sample Report
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Attribute
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Details
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Base Year
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2023
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Historical Years
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2019 –
2022
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Estimated Year
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2024
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Forecast Period
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2025
– 2029
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Quantitative Units
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Revenue in USD Billion and CAGR for 2019-2023 and 2024E-2029F
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Report Coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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Segments Covered
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Battery Type
Connection Type
Application
End User
Region
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Regional Scope
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North
India, South India, West India, and East India
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Key Companies Profiled
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AES India Engineering Limited, Exide Industries Ltd, Delta
Electronics India Private Limited, Toshiba India Private Limited, Amara Raja
Batteries Ltd, Panasonic Corporation, HBL Power Systems Ltd, Schneider
Electric India Pvt Ltd, Siemens Ltd
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Customization Scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Pricing and Purchase Options
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Avail of customized purchase options to meet your exact
research needs. Explore purchase options
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Delivery Format
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PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf format
on special request)
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Report Scope:
In this report, the India battery energy
storage systems market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- India Battery Energy
Storage Systems Market, By Battery Type:
o Lithium-ion
o Advanced Lead Acid
o Flow Batteries
o Others
- India Battery Energy
Storage Systems Market, By Connection Type:
- India Battery Energy
Storage Systems Market, By Application:
- Front of the Meter
- Behind the Meter
- India Battery Energy Storage Systems
Market,
By End User:
- Commercial
- Industrial
- Residential
- India Battery Energy Storage Systems Market, By Region:
- North India
- South India
- West India
- East India
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India Battery Energy Storage
Systems Market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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soon. If you wish an early delivery of this report or want to confirm the date
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