To keep pace with the changing dynamics of the energy markets, India is now working toward a National Energy Storage Mission (NESM). In February 2018, a committee with representatives from relevant ministries, industry associations, research institutions and experts, was constituted by the MNRE to propose a draft for setting up NESM in India.
The Minister for Power, Raj Kumar Singh, apprised the Lok Sabha about this initiative.
“The committee has proposed a draft NESM with objective to strive for leadership in energy storage sector by creating an enabling policy and regulatory framework that encourages manufacturing, deployment, innovation and further cost reduction,” Singh said.
Singh said NITI Aayog and the Rocky Mountain Institute’s joint report on India’s Energy Storage Mission has proposed a three-stage solution approach: creating an environment for battery manufacturing growth, scaling supply chain strategies and scaling battery cell manufacturing.
Energy storage is one of the most crucial and critical components missing in India’s energy infrastructure strategy and is a must to sustain India’s transformation from fossil fuels to renewables. Key areas for energy storage application include integrating renewable energy with distribution and transmission grids, setting rural micro-grids with diversified loads or standalone systems and developing the storage component of electric mobility plans.
Recently, the MNRE brought battery energy storage systems (BESS) under the ambit of the Solar Photovoltaics, Systems, Devices and Component Goods (Requirement for Compulsory Registration under BIS Act) Order 2017.
Mercom previously reported that India could account for more than one-third of the global market for electric vehicle (EV) batteries by 2030 if it becomes a 100-percent EV nation, according to a study conducted by Niti Aayog and the Rocky Mountain Institute.
India’s renewable energy sector needs a strong backbone in the form of a robust energy storage industry in order to sustain its growth trajectory. In a recent interview with Mercom, Naveen Sharma, the vice president of energy storage provider Exicom, noted that India’s current position in the battery manufacturing sector could hinder its plans to add more renewable energy. The solution, he said, is for the country to create a strategy to transform itself into a global hub for energy storage solutions.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.