India is making strides in transitioning away from dirty fuels to cleaner energy sources, with the lithium ion battery storage industry growing rapidly. Currently, the country has around 100 megawatts of storage capacity from batteries, aiming to reach 74 gigawatts by 2032. Major Indian businesses are investing in battery technology, with plans for large factories to meet the increasing demand for storage. While some customers are hesitant about using batteries due to perceived costs and supply chain vulnerabilities, experts believe that combining clean energy with adequate storage can be a viable alternative to coal.
Energy analyst Alexander Hogeveen Rutter emphasizes the importance of scaling up storage capacity alongside renewable energy expansion, noting that renewable energy combined with storage can already compete with coal in terms of cost. Battery costs are decreasing rapidly, making energy storage systems more competitive with other sources like coal, hydropower, and nuclear energy. India’s growing population and rising demand for electricity, driven by factors like climate change and increased air conditioning use, require quadrupling renewable energy deployment to meet the demand growth, according to experts.
Ankit Mittal, co-founder of energy storage company Sheru, suggests making battery storage sites more flexible and accessible to the national energy grid to meet varying energy demands efficiently. While the Indian government has announced schemes to support the expansion of battery storage, subsidies for coal plants still exist, making coal-generated electricity a cheaper option for some utility companies. Industry leaders are hopeful that upcoming government policies, including the national budget announcement, will provide incentives for clean energy storage, leveling the playing field for the battery sector to thrive.
The transition to cleaner energy sources is essential for India to meet its growing energy needs sustainably. The country’s unique challenges, including rapid population growth and increasing electricity demand due to climate change impacts, necessitate innovative solutions like battery storage to complement renewable energy sources. With significant investments from businesses and potential policy changes on the horizon, India is poised to accelerate its energy transition and reduce its dependence on dirty fuels. The advancements in battery technology and storage systems offer a promising future for India’s energy sector, marking a shift towards a more sustainable and cleaner energy landscape.
