Energy Storage Market in India Outlook Update Q2 2020

Indian Energy Storage Market is expected to grow at a CAGR of 6.1% by 2026. Having said so, in CY 2019 the capacity additions pace for renewable sector in the country was low as compared to erstwhile year-on-year capacities being added from CY 2014, but owing to strong push by Government & decline in the cost of storage technologies, CY 2019 witnessed a rise in the number of storage tenders.

Having said so, the onset of COVID-19 has created a series of disruptions in the supply chain and manufacturing of Li-ion batteries impacting the Indian EVs and stationary energy storage market. Since, China is dominant in the Li-ion battery manufacturing and supply chain the impact is expected to account for coming next 3 Quarters. This further, shall have a cascading effect on implementation of Energy Storage Enabled projects in India for at least next 4 Quarters.

Key Signpost – Special Incentive Package for Energy Storage, EVs & Renewable Industry

To minimize the expected slowdown, various stakeholders expect, that the Government should create special incentives package for energy storage, electric vehicle (EV) and renewable industry, which includes special GST reduction for a specified period (3 months to 1 year), creation of special energy storage procurement targets for next 1-5 years, and skill development and capacity building training programs in energy storage and EV sector to increase the employment. Further, the Government is also expected to launch a framework to support indigenous manufacturing capabilities.

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• Large-scale adoption of energy storage is expected to attract investment over $3 billion in the next three years in India. Already, over 1 GWh of annual assembling capacity is being set up for converting imported li-ion cells into battery modules by various Indian companies.
• The NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly-owned subsidiary of the NTPC, has issued a global expression of interest (EOI) for ten fuel cell electric vehicles (FCEV) for public transportation purposes in Leh and New Delhi. The pilot project includes the launch of five each of fuel cell electric buses and cars in Leh and New Delhi under phase-I of the program.

• As on May 2020, approximately 1888.55 MWh of Energy Storage Backed Renewable Energy Projects have been tendered in the country. Out of this 1888.55 MWh, 27.2 MWh of tenders have been cancelled in their earlier stages due to high costs.
• Grid scale energy storage installations in India are mostly in the form of pumped hydro storage plants, at capacity of 4.8 GW. Deployment of large-scale battery energy storage projects in India started in 2017 with POWERGRID installing their first pilot projects for frequency regulation. The projects have been designed for multiple grid service application.

• Battery Manufacturers for Energy Storage Systems
• Electric Vehicle Value Chain Players
• Battery Suppliers to Electric Vehicles
• Utility Solar Power Project Developers
• Roof-top Solar Power Project Developers
• EPC Contractors for Solar & Wind Energy Projects
• Smart Grid Service Providers
• Power Distribution Utilities
• Power Transmission Utilities
• Telecom Industry Players
• Diesel Generator Manufacturers
• Government & Regulatory Bodies
• Research Institutions/Bodies
• Funding Bodies/Banks

• General Electric
• Exide Technologies
• Amaraja Group
• Hitachi Limited
• Samsung SDI
• AES Storage Systems
• Luminous Power  Technology Systems
• HBL Power Systems
• Su-Kam Power Systems
• Base Corporation
• Okaya Power Limited
• True Power International Limited
• Southern Batteries Limited
• Green Vision Tech Private Limited
• Evolute Solution Limited
• BHEL
• Larsen & Tourbo
• Sterling & Wilson
• Mahindra Susten