India’s draft National Energy Storage Mission focuses on reducing costs of domestic EV batteries

Battery manufacturing represents a “huge economic opportunity for India”, according to a draft ‘National energy storage mission’ (NESM) document, which outlines how the country could capture value across the supply chain and accelerate the country’s adoption of renewable energy.

The Indian government Ministry of New and Renewable Energy (MNRE) issued a statement towards the end of last week announcing the publication of a joint report on the potential for scaling up domestic manufacturing of batteries for EV. Written by NITI Aayog – (the National Institution for Transforming India) and US think tank Rocky Mountain Institute (RMI), the 36-page report makes key policy recommendations to take place in three distinct stages.

While the MNRE statement referred to energy storage as “one of the most crucial and critical components of India’s energy infrastructure”, with the mission itself and its Expert Committee brought together to achieve an objective of becoming a leader in the energy storage sector, the report focuses almost exclusively on the manufacture of batteries for EVs. The NESM also suggests incentives and other ways to accelerate the market, such as tax incentives and land grants for manufacturers as well as the streamlining of permitting systems.    

India is aiming for 100% of car sales to be electric by 2030, which NITI Aayog and RMI said was ambitious but achievable, with a supportive government and an “active and involved consortium”. In fact, the report’s authors only mention addressing the need for batteries for the stationary storage market once this all-electric consumer transport future has been reached.

In March, power minister R.K Singh chaired a meeting with battery-based energy storage manufacturers calling on them to set up manufacturing units in India, stating that a “Make in India” policy supporting such efforts and similar to ‘Make in India’ policies for other sectors was forthcoming.

In the short term, the industry also received a boost just a few weeks ago when the rate of the newly introduced Goods and Services Tax (GST) - applied across all sectors of the Indian economy – that is applicable to lithium-ion batteries, was cut by 10%.


Source :

Smart Grid Bulletin July 2019

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