Demand for energy storage to rise between 106 GWh to 260 GWh by 2030: Niti Aayog

• Electric vehicles (EVs), including freight, are expected to drive approximately 40 percent of this demand
• As the push towards the PLI scheme affirms, India has a window of opportunity to capture a large market share of electric mobility and the batteries required to support it

New Delhi: Demand for energy storage batteries will rise to between 106 GWh to 260 GWh by 2030 driven by sectors like e-mobility, power grid-support uses, behind-the-meter applications, and consumer electronics, a recent report by Niti Aayog has said. "India is expected to be one of the largest markets for energy storage by 2030 and is now at the crossroads for creating market mechanisms and planning investments that can ensure a comprehensive domestic battery manufacturing ecosystem. Sustained economic growth and demand for electricity will create the perfect growth opportunity for battery storage across EVs, grid-support uses, behind-the-meter applications, and consumer electronics," said the report by Niti Aayog and non-profit research group Rocky Mountain Institute (RMI).

The news comes as evaluation is underway to support the creation of 50 GWh of domestic production capacity for making Advanced Chemistry Cells (ACC) through a Production-Linked Incentive (PLI) scheme, said the report.

EVs to drive 40% of demand for energy storage

Electric vehicles (EVs), including freight, are expected to drive approximately 40 percent of this demand. Citing BloombergNEF figures, the report forecast demand for energy storage at US$150 billion annually by the end of this decade. And with a high penetration of EVs and stationary energy storage, India alone could represent 13 percent of the total global demand.

Beyond this, applications in grid support can allow the evolution of a resilient power sector and facilitate the addition of increasingly higher shares of renewables, supporting the transition to a decarbonised grid. Despite their significant value proposition, however, India is currently largely reliant on imports of cells from other countries and has very limited domestic assembly operations for modules and packs. Targeted strategies and planning must complement government ambitions to reduce continued reliance on imported cells, said the report.

PLI scheme: India can capture large share of EV battery market

As the push towards the PLI scheme for battery manufacturing affirms, India has a window of opportunity to capture a large market share of electric mobility and the batteries required to support it. But as this overview suggests, the competition to dominate the space is clear and present. The success of India's PLI scheme will require a strong co-ordinated strategy to overcome its relatively nascent position in advanced cell manufacturing supply chain, said the report by Niti Aayog.

Grid flexibility requirements to drive demand for rnergy storage 

Beyond the expected growth in EVs, the stationary energy storage market is poised to experience significant growth as the need for grid flexibility will rise to integrate 500 GW of non-fossil fuel energy on the grid by 2030. Stationary energy storage will play a critical role at all levels on the power grid, including behind-the-meter applications, distribution and transmission systems, and large-scale centralised renewable generation facilities.  

"This analysis projects that the cumulative capacity of stationary storage for grid support can reach 26 GW/104 GWh in the conservative scenario, and has the potential to expand up to nearly 65 GW/260 GWh by 2030 in the accelerated scenario," said the report. 

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