With the selection of four companies for the ₹18,100 crore production-linked incentive (PLI) scheme to manufacture battery storage, the government has taken an important step towards transitioning away from fossil fuels. Battery storage is a critical component of the transition, and reducing storage cost central to adoption of clean energy. The PLI scheme and the choice of companies is a clear signal that GoI is set on addressing the issue.
The focus on the manufacturing of advanced chemistry cell (ACC) battery storage is important, as it will help drive storage costs down and facilitate adoption of clean energy. The selection of Reliance, Hyundai, Rajesh Exports and Ola - all end-users and proven entities - will provide speedy access to capital and other resources will help scale-up battery storage adoption. With the demand for ACC battery storage rising in the South Asia and Indo-Pacific region, India has a chance to leverage the market size to drive down cost and capture a sizeable share of the market. GoI must help create the ecosystem to sustain production, including market design and revenue models to encourage battery adoption. It will create jobs across the battery storage value chain. The PLI scheme itself is technology agnostic, allowing for greater experimentation, which could lead to longer battery viability. The focus on simultaneous domestic and export demand is important.
The choice of companies and design of the scheme is reassuring, making this an effort that goes beyond mere aspiration. Savings in import bill, improved energy security, lower emissions and pollution will be the attendant benefits. India has taken an important step towards actualising its goal of being a major clean energy provider to the world.
The focus on the manufacturing of advanced chemistry cell (ACC) battery storage is important, as it will help drive storage costs down and facilitate adoption of clean energy. The selection of Reliance, Hyundai, Rajesh Exports and Ola - all end-users and proven entities - will provide speedy access to capital and other resources will help scale-up battery storage adoption. With the demand for ACC battery storage rising in the South Asia and Indo-Pacific region, India has a chance to leverage the market size to drive down cost and capture a sizeable share of the market. GoI must help create the ecosystem to sustain production, including market design and revenue models to encourage battery adoption. It will create jobs across the battery storage value chain. The PLI scheme itself is technology agnostic, allowing for greater experimentation, which could lead to longer battery viability. The focus on simultaneous domestic and export demand is important.
The choice of companies and design of the scheme is reassuring, making this an effort that goes beyond mere aspiration. Savings in import bill, improved energy security, lower emissions and pollution will be the attendant benefits. India has taken an important step towards actualising its goal of being a major clean energy provider to the world.
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