Need for Advanced Chemistry Cell Energy Storage in India - Part I

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Need for Advanced
Chemistry Cell Energy
Storage in India
Report /
Feb 2022
Part I of III Authors & Acknowledgments
Authors
Randheer Singh, NITI Aayog
Akshima Ghate, RMI India
Jagabanta Ningthoujam, RMI India
Arjun Gupta, RMI India
Shashwat Sharma, RMI

Leadership
The team is grateful for the mentorship and inputs provided by:
Amitabh Kant, NITI Aayog
Clay Stranger, RMI

Contacts
For more information, contact info@shoonya.info or indiainfo@rmi.org

Acknowledgments
The authors would like to acknowledge NITI Aayog staff Shri R.P. Gupta, Late Shri S.K.
Saha, and Aman Hans, whose leadership and guidance drove the contour of this report
series. Further, the authors would also like to specially acknowledge Garrett Fitzgerald
and Robert McIntosh, formerly from RMI, whose analyses and research forms the
bedrock of this report.
The team is also grateful for the input and contributions received from the larger RMI
team. Special mention for the following:
Samhita Shiledar, RMI
Pranav Lakhina, RMI
Benny Bertagnini, RMI
Sai Sri Harsha Pallerlamudi, RMI India
We would also like to thank the following organizations that provided valuable inputs
that helped shape the report:
Central Electricity Authority (CEA)
India Energy Storage Alliance (IESA)
India Cellular and Electronics Association (ICEA)
PricewaterCoopers Pvt Ltd./PWC India






Suggested Citation
NITI Aayog, RMI, and RMI India, Need for Advanced Chemistry Cell Energy Storage in
India (Part I of III), February 2022.
Available at NITI Aayog:
https://www.niti.g
ov.in/sites/default/files/2022-02/Need-for-ACC-Energy-Storage-
in-India.pdf
Available at RMI India:
h
ttps://rmi-india.org/insight/the-need-for-advanced-chemistry-energy-storage-cells-
i
n-india
Available at RMI:
h
ttps://rmi.org/insight/the-need-for-advanced-chemistry-energy-storage-cells-in-
i
ndia
All images used are from iStock.com/Shutterstock.com unless otherwise noted. www.rmi-india.org /
4Need for Advanced Chemistry Cell Energy Storage in India

About NITI Aayog
The National Institution for Transforming India (NITI Aayog) was formed via a resolution
of the Union Cabinet on 1 January 2015. NITI Aayog is the premier policy ‘Think Tank’ of
the Government of India, providing both directional and policy inputs. While designing
strategic and long-term policies and programmes for the Government of India, NITI
Aayog also provides relevant technical advice to the Centre and States. The Government
of India, in keeping with its reform agenda, constituted the NITI Aayog to replace the
Planning Commission instituted in 1950. This was done in order to better serve the
needs and aspirations of the people of India. An important evolutionary change from the
past, NITI Aayog acts as the quintessential platform of the Government of India to bring
States to act together in national interest, and thereby fosters Cooperative Federalism.
About RMI
RMI is an independent nonprofit founded in 1982 that transforms global energy systems
through market-driven solutions to align with a 1.5°C future and secure a clean,
prosperous, zero-carbon future for all. We work in the world’s most critical geographies
and engage businesses, policymakers, communities, and NGOs to identify and scale
energy system interventions that will cut greenhouse gas emissions at least 50 percent
by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland,
California; Washington, D.C.; and Beijing. 
About RMI India
RMI India is an independent think-and-do tank. RMI India takes inspiration from and
collaborates with RMI, a 40-year-old non-governmental organisation. RMI India’s mission
is to accelerate India’s transition to a clean, prosperous, and inclusive energy future.
About Us Table of Contents
About the Report9
Executive Summary6
Conclusion33
Value of Battery Storage Across the Ecosystem17
Introduction10
Appendices35
Opportunity for Advanced Chemistry Cell Energy
Storage in India
24
Endnotes47 Executive Summary www.rmi-india.org /
7Need for Advanced Chemistry Cell Energy Storage in India

Executive Summary
The recently concluded COP26 has not only provided
a much-needed impetus to move away from fossil
fuel-based energy sources but has also demonstrated
the need to adopt disruptive technologies to fastrack
the transition to green energy. The Prime Minister of
India has outlined an ambitious target of 500 GW of
non-fossil fuel-based energy generation in India by
2030 and to reduce the total projected carbon
emissions by 1 billion tonnes by 2030. To attain these
targets, India needs a significant amount of grid
storage and a large increase in the number of electric
vehicles (EVs). However, this requires stepping up
local manufacturing, exploring new avenues, and
allowing global competition in sunrise sectors such
as energy storage.
Energy storage has reach and leverage across
numerous sectors of India’s economy. A matured
domestic battery manufacturing ecosystem is
expected to create competitive advantages and
contribute to India’s energy security. This will require
a combination of demand and supply-side measures.
India is at a nascent stage of creating a domestic
cell manufacturing ecosystem. There is, however,
an enormous potential for large-scale battery
manufacturing. The expected scale and growth of
the country’s battery market is substantial enough
to warrant gigascale manufacturing capacity in
the years ahead. Policies that induce India-based
manufacturing to meet domestic demand can help
the country create jobs and capture economic value
from this sunrise sector.
Currently, India has a negligible presence in the global
supply chain for manufacturing of advanced cell
technologies.
i
Advanced batteries are a cornerstone
technology, and their manufacturing within India could
allow domestically sourced batteries to cater to the
demand generated from EVs, grid storage applications,
consumer electronics, and other uses. It is an
opportune time for India to step forward and support
the development of a domestic battery manufacturing
ecosystem that meets its future energy storage market
needs and helps reduce its dependence on imports to
meet the future advanced energy economy demands.
ii

This report estimates India’s future demand for
batteries under two scenarios: an “accelerated”
scenario and a “conservative” scenario. The
accelerated scenario assumes the current policy
momentum for EVs, renewables, and other end-use
applications. This will trigger the market and lead
to high penetration of these technologies. In the
accelerated scenario, battery demand rises in line
with expected success of India’s ambitions and
incentives around vehicle electrification and grid
decarbonization. The conservative scenario assumes
battery demand rises in line with the most
conservative expert forecasts. www.rmi-india.org /
8Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 1Expected Growth in Indian Battery Demand (Accelerated Scenario)
1
In the accelerated scenario, battery demand is
expected to rise to 260 GWh by 2030 (see Exhibit 1).
This would require nearly 26 gigafactories with an
average advanced battery production capacity of
10 GWh per year. The conservative scenario battery
demand would require 10 gigafactories by 2030.
Since India has no manufacturing plants at this scale
now, developing and rapidly scaling its advanced
battery manufacturing industry is expected to require
focused and coordinated public-private actions.
This market assessment informs the opportunity and
criticality for India’s emergence as a major global
hub for advanced cells manufacturing. The recently
announced production-linked incentive (PLI) scheme
is the most important lever for enabling this
opportunity to come to fruition.
2
In addition to this,
sustained efforts must be made beyond the scheme
to ensure adequate market development for these
batteries as well as to address future preparedness
challenges around sustainability of the material
ecosystem and adaptation to future developments in
advanced energy storage technology.
30018
25015
20012
1509
Annual Demand (GWh/Year)
Market Size ($ Billion)
100
202220262030
6
503
00
Passenger
EVs
Stationary Storage
(Grid-scale)
Commercial
EVs
Behind-the-meter
(Res + Comm)
E-buses
Rail +
Defense
Freight
Market
Size
Consumer
Electronics
E 2-wheeler/
3-wheeler
2
6
15
21%
EV SHARE
48%
EV SHARE
40%
EV SHARE www.rmi-india.org /
9Need for Advanced Chemistry Cell Energy Storage in India

This report is part of a three-report series designed
to create a shared understanding among stakeholders
of current status and future trends that are emerging
in the advanced chemistry cells (ACC) battery sector
and to build awareness of India’s supportive programme
on ACC battery storage, most importantly the
Productive Linked Incentives (PLI) scheme for cell
manufacturing. NITI Aayog, RMI, and RMI India present
a thorough assessment of the global electric mobility
and stationary storage sectors through a set of lenses,
including international best practices in policy design,
international technology trends in advanced cell
batteries, global and domestic market sizing, and key
risks across the value chain. This first report of the
series looks at global trends and presents the
opportunity that energy storage represents for India.
About This Report Introduction www.rmi-india.org /
11Need for Advanced Chemistry Cell Energy Storage in India

The global market for electric mobility and renewable
energy is undergoing rapid growth supported by
government policies, technological advancements,
and declining costs. The implementation of the PLI
Scheme signals India’s commitment to the
transformation of its mobility and energy systems.
Such a transformation will do more than unlock the
energy storage opportunity and the clean movement
of people and goods. It will also create benefits that
will reach almost every corner of the economy.
The focus on electrification of transportation as a
primary technology pathway to achieve this
transformation is driven by fundamental forces at the
intersection of global technology trends and India’s
rapidly growing economy. Cementing this focus, India
has pledged targets of 30% of new vehicle sales to be
electric by 2030, which align with the broader goals
of reducing carbon intensity of its economy by 45%
by 2030 as announced at COP26.
3
This intersection
presents India with a powerful opportunity to emerge
as a global leader in new mobility solutions and battery
manufacturing, positioning it for durable economic
growth and global competitiveness. India is uniquely
positioned to deploy EVs at scale, leapfrogging
traditional mobility models that perpetuate congestion,
air pollution, and oil import dependence while driving
down the costs of batteries through economies of
scale even faster than current projections anticipate.
To aggressively shift towards renewable energy,
energy storage, and EVs, the Government of India
announced a target of 500 GW of non-fossil fuel energy
deployment by 2030,
4
and has signalled strong support
of electric mobility through FAME II and other
supportive policies,
5
including the recently announced
Auto (US$3.5 billion) and Semiconductor (US$10 billion)
PLI scheme. Growing India’s battery manufacturing
ecosystem to meet this local demand will create huge
competitive advantages in mobility and consumer
electronics. It will also support a stable and resilient
electricity grid that can absorb increasing shares of
renewable energy. In this way, batteries can have
leverage over several of the most dynamic and growing
sectors of India’s economy.
Institutional leaders across the world are keen on
playing an active role in the growing energy storage
market. With the global market expected to exceed
US$150 billion annually by 2030,
6
there is a clear
motivation for India’s market participation. India is
well positioned to capture a large share of the growing
global market and could represent up to 13% of global
battery demand by 2030 with high penetration of EVs,
increasing demand of stationary storage applications,
and continued growth in the consumer electronics
sector.
7
India must act now to promote the growth of
a strong domestic advanced battery manufacturing
market to compete with an uptick in global policy
supporting domestic battery manufacturing in China,
Europe, Southeast Asia, and the United States.
In order to stimulate growth in domestic ACC
manufacturing and encourage development of
dedicated gigascale (greater than 5 GWh/year in
battery cell production) manufacturing capacities,
the government of India called for the participants
to bid for the scheme. This umbrella-level initiative
addresses three key aspects that are imperative
from the perspective of promoting advanced cell
manufacturing in the country. These are:
• A central-level scheme extending suitable
financial incentives for advanced chemistry cell
battery manufacturing
• Key central-level initiatives pertaining to
encouraging demand creation in electric vehicles
• Provision of a single-window framework to potential
global investors to come and invest in India
Introduction www.rmi-india.org /
12Need for Advanced Chemistry Cell Energy Storage in India

State governments are expected to be major
contributors in the success of the programme, and
they will be encouraged to provide additional incentives
for setting up manufacturing facilities through the
state-level grand challenge, which is part of the program.
In turn, this will help contribute to state economies
and job growth. In the process of developing the policy
framework, NITI Aayog organized consultations with
all stakeholders, including major cell and battery
manufacturing companies, within and outside India.
In addition to this incentive structure, measures to
stimulate demand for stationary storage, EVs, and other
applications are being developed and strengthened in
consultation with the relevant ministries. Specific to
EVs this includes measures like the Auto PLI scheme,
FAME II Scheme, various state EV policies (see
Appendix C for details), and several other fiscal and
non-fiscal policy measures by central ministries and
state governments. The government has sent a clear
signal through several schemes and announcements
that electric mobility is a primary technology path in
achieving India’s clean and connected mobility
transformation (in line with the world).
Along with strong signals supporting electric mobility,
the Government of India and the private sector have
indicated promising market growth in the renewable
energy industry. Achieving high levels of renewable
energy penetration on the grid will naturally create a
large market opportunity for stationary storage to
complement solar and wind projects. Stationary energy
storage systems (ESS) can provide a variety of services
to stakeholders at all levels of the electricity system,
including utilities, grid operators, and end-use
customers. With the rate of cost decline in the industry,
batteries are becoming highly competitive with
incumbent technology, further creating new demand for
stationary storage applications across a wide
stakeholders group.
The strategic allocation of FAME II resources, an
increasingly supportive policy and regulatory
framework for electric mobility, and the collaborative
and integrative role of the National Mission on
Transformative Mobility and Battery Storage will
potentially have a catalytic effect, helping India capture
the economic opportunities at hand while delivering
societal and environmental benefits. www.rmi-india.org /
13Need for Advanced Chemistry Cell Energy Storage in India

Why Batteries, Why Now?
• Global Climate Action and the Need to Integrate a Higher Share of Renewables:
With existing NDC targets reinforced by the recent announcement of a net-zero
target by 2070, India is aiming to accelerate decarbonization efforts in line with
global momentum on climate action. India has committed to meet 50% of its
energy requirement from renewable energy by 2030, which includes a target
of 500 GW of non-fossil fuel energy capacity by 2030. Advancement in battery
technologies will be central to achieving these goals.
• Energy Security: India is dependent on imports for much of its energy value
chain, chiefly commodities like crude oil and natural gas but also products like
solar panels and lithium-ion batteries which are central to decarbonization. As
energy transition accelerates, domestic battery manufacturing will be critical to
ensuring a greater degree of energy security for the country.
• Air Pollution: Local air pollution continues to be a growing challenge for India. Of
the top 30 most polluted cities in the world, 22 are in India,
8
and as urbanization
accelerates, this problem is bound to compound. EVs will be essential to cleaning
up distributed urban transport pollution.
• Electric Vehicle Ambition: To attain the leading position in this cutting-edge
technology disruption, India has set an ambitious aim of achieving the EV
30@30 goals.
9,iii
This is poised to increase the annual share of batteries needed
for mobility, making transport a critical demand sector for batteries.
• Industrial Development and Indigenization: Battery manufacturing presents
an opportunity to partake and become a leader in a global sunrise industry and
accelerate indigenization of the energy and transport value chain.
• Falling Battery Costs: With the cost of batteries falling, many end-use
applications are increasingly becoming economically viable. This trend will only
accelerate as battery performance is continuously improving in tandem with the
price decline.
Global Battery Storage Market
Overview
An increasing level of policy and regulatory support
combined with the rapid advances in energy storage
technology and significant cost declines are creating
enabling conditions for a rapid growth of the electric
mobility market. According to RMI’s research and

Bloomberg New Energy Finance’s (BNEF’s) analysis,
the global demand for lithium-ion batteries is expected
to reach more than 2.8 TWh annually by 2030, with
a vast majority of that demand serving electric
transportation as indicated in Exhibit 2 below. www.rmi-india.org /
14Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 2Global Annual Lithium-Ion Battery Demand By End Use
10
Similar momentum is emerging in ESS applications.
Investment in stationary energy storage globally
reached US$6.3 billion in 2020. It is expected to
continue at a rapid pace reaching US$22 billion by
2025 and more than US$30 billion by 2030 (as seen
in Exhibit 3). There could be room for significant upside
to this if grid decarbonization gets the critical
momentum required to achieve net-zero goals. These
projections also do not account for India’s ambition to
become a significant market for energy storage and
a leader in battery manufacturing.
Passenger
EVs
Electric
2W/3W
Commercial
EVs
E-buses
Consumer
Electronics
Stationary
Storage
3000
2500
2000
1500
1000
Annual Demand (GWh/Year)500
201920252024202320222021202020262027202820292030
0 www.rmi-india.org /
15Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 3Annual Global Investment in Stationary Energy Storage—Outlook
11
Exhibit 4Lithium-Ion Battery Manufacturing Capacity by Country
12
In response to this momentum and massive demand
growth expectations, many countries are already
moving quickly to establish manufacturing pre-eminence
in the battery storage space. Gigafactories—factories
with battery manufacturing capacities over 5 GWh/
year—have begun developing worldwide (as seen in
Exhibit A1 in Appendix A), and the global market is
growing rapidly. China has been the fastest mover,
and currently is responsible for 78% of global
battery manufacturing capacity. The United States
and Europe account for 8% and 7% of current
manufacturing capacity, respectively (see Exhibit 4).
Americas
Europe, Middle East
and Africa
Asia PacificRest of the World
35000
30000
25000
20000
15000
10000
Annual Investment ($ Million)
5000
202020252030
Japan
1%
China
Europe
United
States
Korea
Japan
Others
2020
540 GWh
China
78%
China
65%
E.U.
7%
E.U.
21%
Others
6%
U.S.
8%
U.S.
6%
Korea
5%
Korea
1%
Japan
2%
2025
(Expected)
2015 GWh
0 www.rmi-india.org /
16Need for Advanced Chemistry Cell Energy Storage in India

Projections indicate a rapid growth in both demand
and manufacturing capacity, with many new entrants
between now and 2025, as more countries compete for
a share of the market. Beyond existing facilities, future
ones are being built around the world (see Exhibit A2
in Appendix A). Exhibit 4 shows that projected capacity
additions between now and 2025 will exceed 1,450
GWh of new annual production capacity globally, with
China retaining a large share of the market and Europe
emerging as a geography of high growth.
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. Value of Battery Storage
Across the Ecosystem www.rmi-india.org /
18Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 5Battery Storage Market Attractiveness
Mobile Applications2020 2025 2030
Personal four-wheeled EVs LowMediumHigh
Commercial four-wheeled EVs High
Personal two-wheeled EVs MediumHigh
Commercial two- & three-wheeled EVs MediumHigh
Electric Buses MediumHigh
Stationary Applications 2020 2025 2030
Microgrids Applications/Diesel
Replacement
HighMediumLow
Grid Support/Ancillary Services High*
Renewable Integration MediumHigh
T&D Upgrade Deferral MediumHigh
C&I Behind-The-Meter MediumHigh
Residential Behind-The-Meter LowMedium
*Assuming participation in wholesale ancillary markets is possible
Before delving into sizing the opportunity for battery
manufacturing in India, it is important to understand
the different usages of batteries across the ecosystem.
The applications for cost-effective deployment of
batteries are constantly evolving and maturing as cost
and performance improve, leading to a healthy
diversification of applications across stationary storage,
vehicles, and consumer electronics. Exhibit 5 below
presents a timeline of when batteries will likely
become competitive with incumbent technologies
without subsidies and potentially replace them.
iv

The competitiveness and market attractiveness of
advanced batteries and battery systems conveyed in
the table below are a function of the expected cost
competitiveness of batteries compared with the
incumbent technology and informs the forecasted
market size of each application during the indicated
timeframe.
Value of Battery Storage Across
the Ecosystem www.rmi-india.org /
19Need for Advanced Chemistry Cell Energy Storage in India

EV Owners and Fleet Operators
The usage and value of batteries in EVs are more
direct. Batteries currently account for 25%–50% of
the total cost of an EV depending on range and
performance. While battery costs are declining rapidly,
the battery will remain a critical component of the EV
supply chain. As costs come down and specific energy
densities continue to increase, the performance and
cost competitiveness of EVs will continue to improve
and will soon become the more attractive choice
considering upfront costs, in addition to the already
lower operational costs, compared to diesel, petrol,
and compressed natural gas (CNG) vehicles.
EVs are attractive technologies due to their
lower
maintenance and fuel costs than petrol, diesel, or CNG
vehicles; the number of moving parts in the drivetrain
for a typical EV are just 20, compared to nearly
2,000 for internal combustion engine (ICE) vehicles,
making them more reliable.
13
Vehicles with lower
operational cost are attractive to fleet operators and
commercial drivers due to the relatively large
component of their business costs associated with
vehicle fuel and maintenance. EVs represent a large
cost-saving opportunity for commercial drivers, fleet
operators, and owners of personal vehicles.
Stationary Storage Applications
Stationary ESS can provide up to 17 different services
to stakeholders at all levels of the electricity system,
including utilities, grid operators, and end-use
customers. However, while batteries are technically
capable of providing these services to the various
stakeholder groups identified in this report, a few
challenges must be tackled for system operators to be
properly compensated for those services. The services
described in the following sections are universal
to electricity grids across the world. However, the
nomenclature used here represents specific services
defined in the US electricity market as a proxy for
India because some of these grid services do not yet
exist in the country. The following section of this report
provides a summary of the storage applications that
are possible when enabling regulatory and market
frameworks are in place.
Distribution Companies and Transmission Utilities
Utility services from batteries generally fall into two
categories: upgrade deferral and resource adequacy.
Upgrade deferral refers to the use of energy storage
and demand management to defer or completely avoid
the need to invest in high-cost system upgrades for
both transmission and distribution infrastructure (see
Exhibit 6 below). Forward capacity or resource
adequacy applications refer to the use of storage
systems to meet short-duration system peaking
constraints either from a generation or transmission
perspective. www.rmi-india.org /
20Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 6Energy Storage Value Streams for Utilities and Discoms
Service Name Description
Transmission
Utilities
(Power Grid)
and Discoms
Forward Capacity/
Resource Adequacy
Instead of investing in new natural gas combustion turbines
to meet generation requirements during peak electricity-
consumption hours, grid operators and utilities can pay for
other assets, including energy storage, to incrementally
defer or reduce the need for new generation capacity and
minimize the risk of overinvestment in that area.
Distribution Upgrade
Deferral
Delaying, reducing the size of, or entirely avoiding utility
investments in distribution system upgrades is necessary to
meet projected load growth in specific regions of the grid.
Transmission
Congestion Relief
Independent system operators charge utilities to use
congested transmission corridors during certain times of
the day. Assets including energy storage can be deployed
downstream of the congested transmission corridors to
discharge during congested periods and minimize congestion
in the transmission system.
Transmission
Upgrade Deferral
Delaying, reducing the size of, or entirely avoiding utility
investments in transmission system upgrades is necessary
to meet projected load growth in specific regions of the grid.
Grid Operators
For grid operators, energy storage systems can provide
a suite of ancillary services that supports the reliable
and efficient operation of the electricity grid. The
applications described below are largely differentiated
by the time horizon for which the services are needed,
ranging from fast-responding frequency regulation
to longer duration daily storage or renewable firming
(as seen in Exhibit 7 below). www.rmi-india.org /
21Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 7Energy Storage Value Streams for Utilities and Discoms
Service Name Description
PGCIL/
POSOCO/Grid
Operator/
Value Streams
Energy Arbitrage
(daily)
Energy arbitrage is the purchase of wholesale electricity
while the locational marginal price (LMP) of energy is low
(typically during night time) and sale of electricity back to
the wholesale market when LMPs are highest. Load following,
which manages the difference among day-ahead scheduled
generator output, actual generator output, and actual demand,
is treated as a subset of energy arbitrage in this report.
Frequency
Regulation
Frequency regulation is the immediate and automatic
response of power to a change in locally sensed system
frequency, either from a system or from elements of the
system. Regulation is required to ensure that system-wide
generation is perfectly matched with system-level load on
a moment-to-moment basis to avoid system-level frequency
spikes or dips, which create grid instability.
Reserves Spinning reserve is the generation capacity that is online
and is able to serve load immediately in response to an
unexpected contingency event, such as an unplanned
generation outage. Non-spinning reserve is the generation
capacity that can respond to contingency events within a
short period, typically less than 10 minutes.
Voltage Support Voltage regulation ensures reliable and continuous electricity
flow across the power grid. Voltage on the transmission and
distribution system must be maintained within an acceptable
range to ensure that both real and reactive power production
are matched with demand.
Black Start In the event of a grid outage, black start generation assets
are needed to restore operation to larger power stations in
order to bring the regional grid back on line.
Renewable Firming
(daily)
Renewable firming is when fast-responding resources
effectively smooth or firm up renewable generators output
creating a more traditional dispatchable resource that can
be easily integrated into the existing grid. As intermittent
renewable generation increases, the need for fast-responding
resources that match real-time generation and demand will
increase. In addition, there is some uncertainty in weather
forecasts and some undesirable electrical effects caused by
some sources of renewable energy generation.
Renewable Firming
(seasonal)
Renewable resources such as wind and solar can fluctuate
in output both at the daily scale and the seasonal temporal
scale. Seasonal storage is required at very high levels of
renewable penetration to store large amounts energy for
weeks to months to bridge the gap between seasonally
variable renewable energy output. www.rmi-india.org /
22Need for Advanced Chemistry Cell Energy Storage in India

Electricity Customers
Customer-directed services provide benefit to the
end-user and typically require installation of the
system behind the customer meter. The monetary
value of these services flows directly to the
electricity customer in the form of bill savings or
avoided costs. However, the provision of these
services will inherently provide value to system
operators and utilities because the customers
program their system to respond to price signals
from the utility, such as time-of-use (ToU) tariffs,
demand charges, or other self-generator-related
price signals designed to optimize grid operation (as
seen in Exhibit 8 below).
Exhibit 8Energy Storage Value Streams for Electricity Customers
Service Name Description
Electricity
Customers:
Residential,
Commercial,
Industrial,
Agricultural
Uninterruptible
Power Supply
Provides reliable uninterrupted power supply to critical
loads in the event of a grid power outage or period of low-
quality power supply from the grid.
EV Charging Provides means to flatten the load profile of EV chargers
or charging depots to lessen the strain on the distribution
system that arises from peaky and intermittent high-power
draw. Primarily, it provides means to lower demand charges
for the customer and lessen the need for system upgrades
by the DISCOM.
Solar + Storage
Irrigation Pumping
Provides flexibility to solar pumping systems enabling
night-time pumping or increased pumping during low sun
days.
Microgrid
Applications for
E-Mobility
Microgrids equipped with storage enable charging of EVs
from 100% clean energy and low-cost local sources at any
time of day. Microgrids support the adoption of electric
mobility in rural areas without access to 24x7 power.
Time-of-Use Bill
Management and
Demand Charge
Reduction
Customers can use energy storage systems to reduce
their bills by minimizing electricity purchases during peak
electricity-consumption hours when time-of-use (TOU)
rates are highest and shifting these purchase to periods of
lower rates.
For customers subject to demand charges (per kW
charges), a storage system or energy management system
can lessen peak demand by drawing from the battery
during system peak load.
Increased
Photovoltaic (PV)
Self-consumption
Minimizing export of electricity generated by behind-
the-meter PV systems to maximize the financial benefit
of solar PV in areas with utility rate structures that are
unfavourable to distributed PV (e.g., non-export tariffs). www.rmi-india.org /
23Need for Advanced Chemistry Cell Energy Storage in India

Consumer Electronics
The mobile and electronics industry in India is fast
growing and diverse with a significant reliance on high-
performance batteries across a wide range of
applications. Mobile phones, power banks, IT hardware,
telecom devices, smart agriculture, defence electronics,

and other portable devices all require high density and
safe integrated batteries. As India and the global
population continue to move towards a highly connected
and digitalized society, the demand for smart portable
devices will naturally grow.
Box 1: Battery and Hydrogen–Similarities and Differences
Batteries and hydrogen are both energy carrier and storage technologies. As such they are only
as green as the source of energy that gets stored in them. Both are competing solutions with
significantly different efficiencies that promise to power modern mobility solutions and grid-tied
storage for renewable electricity. Despite hydrogen’s high energy density and lower life-cycle
material impact, batteries are still the preferred solution due to significant advantages in terms of
cost, technology maturity, and roundtrip efficiency. Additionally, battery prices have declined by
nearly 89% since 2010.
14

Similarly, for India, hydrogen potentially only makes sense at the margin in the long term when
renewable penetration becomes extremely high.
15
This also hinges on the expected price decline for
green hydrogen, which will depend on the decline of the prices for electrolysers and the renewable
energy powering the production process.
16
There are also challenges associated with the safe
storage and transportation of compressed hydrogen, which will need some strategic investments.
Despite the present shortcomings, it is globally recognized that hydrogen can play a role in the
transition to a net-zero future. Hydrogen has a compelling value proposition for decarbonization of
heavy industries like ammonia, iron and steel, and refining—sectors and industrial processes where
electrification alone isn’t sufficient for decarbonization.
17
Hydrogen also finds use as a potential
feedstock for manufacturing synthetic fuel for long-distance shipping and aircrafts, as well as for
long duration seasonal storage for power generation. Opportunity for
Advanced Chemistry Cell
Energy Storage in India www.rmi-india.org /
25Need for Advanced Chemistry Cell Energy Storage in India

Scenario 1: The accelerated case scenario (in Exhibit 9), is modelled after the 2030 penetration
levels as discussed in NITI Aayog and RMI’s (2019) FAME II report adjusted for expected slowdown from
the effects of COVID-19.
21
Segment-wise penetration of EVs in new vehicle sales in this scenario is 30%
for private cars, 70% for commercial cars, 40% for buses, and 80% for two- and three-wheelers by
2030.
22
The scenario assumes that FAME II and other policy measures initiated by central and state
governments will help trigger rapid adoption of EVs in the country.
While energy storage has applications in many sectors,
electric mobility is expected to be a primary driver of
demand in India and globally. The majority share of
global battery sales has shifted from consumer
electronics to EVs over the past five years, with nearly
54% of global advanced battery sales going to the
EV segment between 2015 and 2019.
18

Electric Vehicles
Several national and state-level initiatives such as
FAME II and state EV policies are creating an enabling
ecosystem for an accelerated deployment of EVs,
hoping to catalyse the market. The success of
remodelled FAME II has led to a growing penetration of
EVs, which could result in an annual demand for
vehicle batteries in India alone exceeding 135 GWh/
year by 2030.
19

Several central ministries and departments have
initiated policy and regulatory reforms and actions to
reduce the barriers to adoption of electric mobility.
Additionally, several state governments have formulated
or are in the process of developing policies to promote
EV market growth. Several state governments are
setting ambitious targets for adoption of EVs in the
next three to five years. These state-level targets are
supported by policies beyond upfront purchase
incentives and include waivers such as waiver of road
tax, registration fees, and parking fees. (See
Appendix C for additional details.)
FAME II and most state EV policies are focusing on
promoting electrification in public transport,
commercial transport, and two-wheeler vehicle
segments (a mass automotive transport medium in
India). Over their lifetime, these vehicle segments (i.e.,
two-wheelers, auto rickshaws, high utilization four-
wheelers [taxis], and buses), are already at cost parity
in terms of the total cost of ownership (TCO).
20
For
example, according to RMI analysis, the TCO of an e-bus
without government incentives is estimated to be 6%
less than that of a comparable diesel bus and marginally
higher than that of a comparable CNG bus.
v
As battery
prices fall, the upfront cost and TCO of EVs are expected
to decline further.
The current focus of national and state governments
on public transport, commercial transport, and two-
wheeler vehicle segments; the favourable TCO for
these segments; the increasing availability of vehicle
models; and early market trends are indicative of the
high potential of electrification in these segments.

Thus, the estimated future growth of EVs in India in
this report assumes a faster and higher penetration in
these segments in the accelerated case, and slower EV
penetration growth in the conservative case. Scenarios
are detailed below:
Opportunity for Advanced
Chemistry Cell Batteries in India www.rmi-india.org /
26Need for Advanced Chemistry Cell Energy Storage in India

Scenario 2: As seen in Exhibit 10, scenario 2 describes a conservative pathway where the adoption
of EVs does not accelerate at the expected rate of Scenario 1 due to reasons such as a lag in the
formation of the EV ecosystem, insufficient access to charging stations, challenges with distribution
system upgrades to support fast charging, lower than expected introduction of EV models in the
market, delay in price parity of vehicles, delay or changes in policy implementation, lack of consumer
awareness, and more. This scenario assumes a weighted average EV penetration of 35% in new
sales in 2030 across all vehicle segments.
23

Exhibit 9
100%
80%
60%
40%
EV Sales Penetration
20%
Commercial 2W, 3W and private 2WFreight LCVCommercial 4W
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
0%
BusesPrivate 4W
Exhibit 10Conservative Scenario for EV Sales
100%
80%
60%
40%
EV Sales Penetration
20%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
0%
Commercial 2W, 3W and private 2WFreight LCVCommercial 4WBusesPrivate 4W www.rmi-india.org /
27Need for Advanced Chemistry Cell Energy Storage in India

Stationary 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 centralized
renewable generation facilities.
A major driver of early market growth for energy
storage generation will be renewables integration,
replacement of diesel generators for island grids,
industrial back-up applications,
and use in remote
equipment such as cell phone towers. Transmission
and distribution deferral, in particular, is an area where
storage can play a key role and help offset high capital
investment as India looks to augment and overhaul its
transmission and distribution infrastructure. Storage
will also be useful in ancillary services including
frequency response. Early-stage pilots being deployed
will eventually give way to a larger-scale deployment
as the market and technology mature. While the total
ESS commissioned or under construction is only around
85 MWh so far,
24
there is already a pipeline of projects
amounting to 4.6 GWh (see Exhibit 11), suggesting
emerging momentum in this sector.
Exhibit 11ESS Capacity Under Various Stages of Development in India (see Appendix D for detailed
project list)
5
4
3
2
GWh
1
Announced
1.2 GWh
TenderedTotalUnder Construction
& Commissioned
3.3 GWh
0.085 GWh4.6 GWh
26%
72%
2%
0 www.rmi-india.org /
28Need for Advanced Chemistry Cell Energy Storage in India

Expectedly, stationary storage is a very important
demand segment going forward. The growth of the
grid-scale storage requirement is estimated using a
least-cost capacity expansion plan out to 2030 that
fulfils India’s targets for 500 GW of non-fossil fuel
capacity including hydro. The report considers two
scenarios—a conservative case where investments
are allowed in new coal capacity and an accelerated
high renewables case where the growth in coal
capacity is constrained to the current pipeline of
under-construction projects. Data and projections
from the Central Electricity Authority (CEA) were
crucial benchmarks for this assessment.
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. Details of
scenario assumptions are listed in Appendix B.

Beyond flexibility and renewable integration,
batteries will also be in demand for applications
like distribution and transmission upgrade deferral,
commercial and residential behind-the-meter, diesel
generator set replacement, and ancillary services.

As a nascent sector, development of stationary
storage for electricity applications will require
adequate capacity building of relevant stakeholders,
identification of specific use cases, and provision
of incentives and concessional lending, either
through the government or through multinational
financial institutions (MFIs) to enable piloting and
early market creation. To this end, the World Bank
Group has proposed a line of credit amounting to
US$1 billion for facilitating financing at competitive
rates and tenors to the sector.
25
In tandem, NITI
Aayog has also engaged the World Bank to extend
technical assistance to various state governments
and statutory bodies. This will be with a goal to
encourage the techno-economic and regulatory
condition to realize the full potential of batteries for
stationary storage application in the country.
Consumer Electronics
Additional demand for batteries will continue to come
from the consumer electronics sector with India
Cellular and Electronics Association (ICEA) forecasting
an annual demand of 18 GWh for mobile phones and
power banks by 2025. Market growth in the consumer
electronics sector is largely attributed to the growth
in sales of mobile phones and power banks, increasing
from annual sales of 300 million devices today to 1.2
billion devices annually by 2030. Additional demand
from the consumer electronics sector includes
Internet of Things (IoT) devices and telecom towers.
Market forecasts in the consumer electronics sector
and rail and defence industries were derived from
ICEA market forecasts and RMI analysis based on
expert interviews with ICEA.

Indian Battery Market Outlook
The annual market for stationary and mobile batteries
in India could surpass US$15 billion by 2030, with
almost US$12 billion from cells and US$3 billion from
pack assembly and integration, under the accelerated
case scenario. Even under a more conservative case
it amounts to an annual market of US$ 6 billion. With
a successful thriving local battery manufacturing
industry and a supportive local supply chain, India can
capture a significant value within the local economy on
account of localization of the value chain from material
processing up to pack assembly and integration. www.rmi-india.org /
29Need for Advanced Chemistry Cell Energy Storage in India

Exhibit 12Indian Battery Demand Outlook—Accelerated Scenario
26
Meeting demand for batteries with domestic
supply will require rapid buildout of manufacturing
capacity. Based on the accelerated scenario market
forecast detailed above, India can meet domestic
battery demand with two gigafactories of nameplate
capacity of 10 GWh of annual production in 2022.
Starting in 2025, demand begins to increase
exponentially to meet local battery demand from all
segments, increasing from 5 gigafactories in 2025 to
26 gigafactories by 2030. The conservative scenario
requires 3 gigafactories in 2025 and 10 gigafactories
in 2030.
30018
25015
20012
1509
Annual Demand (GWh/Year)
Market Size ($ Billion)
100
202220262030
6
503
00
Passenger
EVs
Stationary Storage
(Grid-scale)
Commercial
EVs
Behind-the-meter
(Res + Comm)
E-buses
Rail +
Defense
Freight
Market
Size
Consumer
Electronics
E 2-wheeler/
3-wheeler
2
6
15
21%
EV SHARE
48%
EV SHARE
40%
EV SHARE www.rmi-india.org /
30Need for Advanced Chemistry Cell Energy Storage in India

Even under the more conservative scenario, the
expected demand is adequate for the PLI scheme.
A key conclusion is the importance of policy push
and demand-side incentives to accelerate market
development for advanced cell batteries. It is also
important to note that these outlooks do not address
the potential for battery exports from India, which
would provide even more demand from domestic battery
manufacturing facilities.
Indian Battery Demand Outlook—Conservative Scenario
27Exhibit 13
Passenger
EVs
Stationary Storage
(Grid-scale)
Commercial
EVs
Behind-the-meter
(Res + Comm)
E-buses
Rail +
Defense
Freight
Market
Size
Consumer
Electronics
E 2-wheeler/
3-wheeler
30018
25015
20012
1509
Annual Demand (GWh/Year)
Market Size ($ Billion)
100
202220262030
6
503
00
1
6
9%
EV SHARE
31%
EV SHARE
33%
EV SHARE
3 www.rmi-india.org /
31Need for Advanced Chemistry Cell Energy Storage in India

Box 2: Second Life and Secondary Use
Batteries slowly degrade over time and after a certain number of charge and discharge cycles, the
cells are no longer capable of maintaining their nameplate energy rating. At some point in the life of
an EV battery pack, the consumer may choose to replace the battery if its capacity is no longer
sufficient to meet the end-use application needs. Typically, this replacement occurs when the battery
performance falls below 70–80% of the initial nameplate storage capacity. While the battery may no
longer be able to meet its original performance requirements, the battery still has life remaining and
can be repurposed for a second-life application in line with its remaining performance characteristics.
Second-life batteries create a connection between the EV and stationary storage value chains and
enable maximum value extraction of batteries before their eventual end-of-life recycling or disposal.
28

An example of this is a joint project between RWE and Audi in Germany which will use 60 end-of-life
battery systems from EVs to provide 4.5 MWh of energy for secondary applications such as frequency
regulation.
29

The rate of battery replacement in the EV segment in India will grow along with the EV market to
between 3 and 16 GWh annually in 2030, for conservative and accelerated scenarios respectively,
creating a large supply of second-use batteries with significant growth occurring after 2025 (as
seen in Exhibit 14). The rate of battery replacement assumes vehicle batteries are replaced after
they drop below the 70–80% threshold. Advancements in battery technology, including increased
cycle life, will have an impact on battery retirements. Even accounting for extended battery life,
battery retirement from all vehicle segments will exceed 19 GWh by 2040.
Exhibit 14Annual Battery Retirement from All Vehicle Segments
30
18
16
14
12
10
8
6
4
Annual Battery Retirement (GWh/year)
2
2022 2023 2024 2025 2026 2027 2028 2029 2030
0
Conservative Accelerated www.rmi-india.org /
32Need for Advanced Chemistry Cell Energy Storage in India

Second-use batteries will largely serve stationary applications with less demanding performance
criteria. Encouraging second-use applications of batteries using both policy and market forces will
help offset the need for new batteries and thus reduce the demand for imported raw materials.
While second-use batteries have a large market potential, it is important to consider the costs
associated with repackaging, testing, and commissioning of second-life systems. These systems
may have to compete with new batteries that have costs that continue to fall.
To facilitate a healthy second-life market, appropriate rules and regulations need to be created
that require original equipment manufacturers (OEMs) to manage the end-of-life disposal, recycling
of, or reuse of batteries after first-life application. A framework of minimum specifications and
standards must be established to ensure these second-use batteries can be installed safely and
effectively. Conclusion www.rmi-india.org /
34Need for Advanced Chemistry Cell Energy Storage in India

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.
Across a scale of conservative to accelerated cases,
the report finds 106 GWh to 260 GWh of annual demand
for batteries by 2030, respectively. Electric vehicles,
including freight, are expected to drive approximately
40% of this 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
decarbonized 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.
This analysis must be situated within the context
of the PLI scheme for manufacturing of advanced
chemistry cell batteries. The PLI scheme encourages
the development of local manufacturing that
leverages India’s factor costs and scale advantages
while also providing export opportunity for a rapidly
growing technology sector. But such a plan must
be complemented by clear, stable, and long-term
policies and incentives at all levels of government
that further stimulate demand for batteries in the
mobile and stationary applications.
OEMs should engage with battery manufacturers
in terms of design thinking so that the EV batteries
can easily have a second life. India must also expand
this capability to recycle end-of-life cells in order to
secure a secondary supply of raw material over the
long term for the gigafactories. Sustainability of the
material supply chain will also be an important
criterion not just from the value capture point of view
but also from the larger energy security perspective
of India’s energy transition.
The PLI scheme promises to put India in a strong
position in the global market and let the country
realize the full value from this technology. But the
ultimate utility of these gigafactories will hinge on
the decarbonization pathway it accelerates, the
larger industrial ecosystem it enables, and the value
that India manages to capture within the country.
Conclusion Appendices www.rmi-india.org /
36Need for Advanced Chemistry Cell Energy Storage in India

Appendix A: Existing and Emerging
Major Battery Manufacturing
Facilities Around the World
Exhibit A1Top 10 Existing Battery Manufacturing Facilities
31
Manufacturer Chemistry Commissioning
Year
Capacity (GWh)
LG Energy
Solution
NMC,
NMCA
201350
Tesla Inc. NCA 2014–2018 32
Manufacturer Chemistry Commissioning
Year
Capacity (GWh)
LG Energy
Solution
NMC 201932
SK On202027
CATL NMC 201924
BYD Co. Ltd. LFP 202020
CATL–SAIC
Motor
NMC 201918
CATL NMC 201715
Manufacturer Chemistry Commissioning
Year
Capacity
(GWh)
LG Energy
Solution
NMC,
NMCA
2016–2021 70
Samsung SDI NMC 202130
Cumulative Capacity
|||| 80 GWh
||||| 100 GWh
|||||| 120 GWh
||||||| 140 GWh
|||||||| 160 GWh
United States
82 GWh
European Union
100 GWh
China
136 GWh www.rmi-india.org /
37Need for Advanced Chemistry Cell Energy Storage in India

Exhibit A2Top 10 Emerging Battery Manufacturing Facilities
32
Manufacturer Chemistry Commissioning
Year
Capacity (GWh)
BlueOvalSK202586
Manufacturer Chemistry Expected
Commissioning
Capacity (GWh)
CATL2024120
Ruipu Energy2027100
CATL202585
CATL202480
Wanxiang
A123
LFP 202377
China AviationNMC 202567. 5
Manufacturer Chemistry Commissioning
Year
Capacity
(GWh)
CATL NMC 2028100
Tesla Inc. NMC 2024100
FREYR202883
Cumulative Capacity
|||| 80 GWh
||||| 200 GWh
|||||| 300 GWh
||||||| 400 GWh
|||||||| 500 GWh
||||||||| 560 GWh
United States
86 GWh
European Union
283 GWh
China
530 GWh www.rmi-india.org /
38Need for Advanced Chemistry Cell Energy Storage in India

Appendix B: Modelling
Assumptions and Methodology
Electric Vehicles
RMI’s inhouse excel-based tool was used to estimate
the EV battery demand outlook.
• Estimations for growth of EVs consider
electrification in the following vehicle segments:
» Two-wheelers
» Three-wheelers
» Commercial four-wheelers (taxis)
» Private cars
» Buses
» Freight vehicles (light-duty, medium-duty and
heavy-duty)
• EV market sizing analysis is performed for two
different scenarios with different penetration
levels (high and low penetration). Annual demand
for batteries is determined based on the annual
EV sales by segment and respective battery
sizes. Battery sizes for the vehicles are:
» Four-wheelers (cars and taxis): 15 kWh
» Three-wheelers: 5 kWh
» Two-wheelers: 2 kWh
» Light Commercial Vehicles (LCV): 15 kWh
» Buses: 250 kWh
» Light-duty freight vehicles (2W/3W/4W):
2.4–14.4 kWh
» Medium-duty freight vehicles: 115–150 kWh
» Heavy-duty freight vehicles: 220–480 kWh
• Batteries are assumed to be replaced after
2,000 charging cycles and until the vehicle
is scrapped. The average assumed lifetime
kilometres for different vehicle segments are:
» Four-wheelers (private): 300,000 km
» Four-wheelers (commercial): 400,000 km
» Three-wheelers: 400,000 km
» Two-wheelers (private): 175,000 km
» Buses: 550,000 km

Grid-Scale Storage
• An open-source model, FlexTool,
33
is used to
perform expansion planning using aggregate
unit-level technical specifications and cost data
guided by prior detailed studies from NREL and
CEA. Hourly demand profile for 2030 is sourced
from a published Nature forecasting study under
scenarios of stable GDP growth, growth of public
EV charging, and baseline cooling loads.
• The base year for the study is 2019–20; capacity
expansion is allowed for target years 2026–27
and 2029–30. Annual demand and peak load
projections from CEA’s 19
th
Electric Power Survey
(EPS) are used and scaled to hourly resolution
using the Nature study’s forecast.
2026–27 2029–30
——————————————————————————————————————————————
Energy Demand 2,145 TWh 2,325 TWh
——————————————————————————————————————————————
Peak Demand 303 GW 355 GW
——————————————————————————————————————————————
• Investments are allowed in conventional
generating capacity (coal, gas, nuclear, and hydro),
renewable energy projects, and 4-hour battery
storage. Constraints on investments are guided
by government targets (450 GW of renewables)
and announced/under-construction capacity for
coal, nuclear, and hydro as available with CEA
and listed in the National Electricity Plan.
• Investment in additional gas capacity is not
considered, considering the limited domestic gas
availability.
• Retirement of approximately 22,700 MW of coal
capacity by 2030 is considered, as per NEP 2018.
• Availability of hydro (storage) plants is estimated
using actual generation SCADA data for all five
sub-regions from 2019 to 2020 available on the
respective Load Dispatch Center website. www.rmi-india.org /
39Need for Advanced Chemistry Cell Energy Storage in India

Appendix C: EV Demand Creation
Efforts in India
Department of Heavy
Industry and Public
Enterprises (DHI)
• In 2015, the Department of Heavy Industry (DHI), Government of India,
established its flagship scheme—the Faster Adoption and Manufacturing of
(Hybrid &) Electric Vehicles in India or FAME—that signaled the beginning
of India’s EV transition. Phase I of FAME incentivized 2.8 lakh electric and
hybrid vehicles from March 2015 to March 2019 through subsidies worth
about INR970 crore.
• Near the end of the scheme, DHI announced FAME II—the Scheme for Faster
Adoption and Manufacturing of Electric Vehicles in India Phase II—effective
1st April 2019. FAME II was provided a total outlay of INR10,000 crore
dedicated to demand incentives and charging infrastructure. As a part
of its eligibility criteria for vehicles, FAME II also established localisation
criteria to promote domestic EV manufacturing. On 11th June 2021, after
incentivization of over 77,000 EVs of its total target of 15,62,090, the DHI
issued amendments to FAME II. On 25th June 2021, DHI also notified a two-
year extension of the Scheme. It will now be valid to 31st March 2024.
• 520 charging stations have been sanctioned under the Phase I of FAME
scheme while under FAME II 2,877 chargers have been sanctioned in 68
cities with another 1,576 chargers being sanctioned across 9 expressways
and 16 highways.
• 6,265 electric buses have been sanctioned in 64 cities/state government
entities/STUs for intra-city and intercity operation under FAME India
scheme phase II.
• Implementing manufacturing of EVs through the Phased Manufacturing
Programme (PMP)
• Approved a PLI scheme for the automobile and auto components industry
with INR26,000 crores in budget on September 2021, aimed at building a
robust value chain for automobiles, including EVs.
Ministry of Power
(MoP)
• Issued a clarification stating that charging electric vehicles is considered a
service and not a sale of electricity. This implies that no license is required
to operate EV charging stations. 
• Released a notification on charging infrastructure standards to enable
faster adoption of EVs. The notification permits private charging at
residences and offices where the tariff for supply of electricity to EV
charging station shall not be more than the average cost of supply plus
15%. www.rmi-india.org /
40Need for Advanced Chemistry Cell Energy Storage in India

Ministry of Road
Transport and
Highways (MoRTH)
• Announced that battery-operated private and commercial vehicles will be
given green license plates.

• Announced that battery-operated, ethanol-powered, and methanol-powered
transport vehicles won’t need permits.
• Issued a circular stating that driving licenses will be given for age group
16–18 years to drive gearless electric scooters/bikes up to 4 KWH battery
size. 
• Issued a draft notification to exempt battery-operated vehicles from paying
registration fees.
• Issued a draft notification to hike registration fees for ICE vehicles.
• Issued a circular asking states to reduce or waive road tax on EVs, which in
turn will help reduce the initial cost of EVs.
Indian Space Research
Organisation (ISRO)
• Issued a request for quotation (RFQ) document for commercialisation of
indigenously developed lithium-ion battery technology. MoU with Tata
Chemicals was signed in March 2019. Technology transfer to BHEL was
completed in Nov 2019 (for the BHEL-Libcoin Gigafactory planned in
Bangalore). AmaraRaja has also set up a lithium-ion battery tech hub in
Tirupati in Feb 2021.
Ministry of Housing
and Urban Affairs
(MoHUA)
• Amended 2016 Model Building Bylaws to establish EV charging stations and
infrastructure in private and commercial buildings.
NITI Aayog • Released a concessionaire agreement for public private partnership in
operation and maintenance of electric buses in cities through the Operating
Expenditure (OPEX) model.
• Implementing the National Mission on Transformative Mobility and Battery
Storage to drive clean, connected, shared, sustainable, and holistic mobility
initiatives. The Mission focuses on creating a Phased Manufacturing
Programme (PMP) to support setting up of large-scale, export-competitive
integrated batteries and cell-manufacturing giga plants in India, as well as
localising production across the entire EV value chain. www.rmi-india.org /
41Need for Advanced Chemistry Cell Energy Storage in India

Ministry of Finance
(MoF)
• Rationalised customs duty for all categories of vehicles, battery packs, and
cells to support Make in India and incentivise uptake of EVs. 
• Incentives announced under India’s Union Budget for financial year 2019-20:
» Income tax deduction of INR1.5 lakh on the interest paid on the loans
taken to purchase EVs
» Customs duty exemption on import of specific components
» Basic custom duty will be increased on certain auto parts to promote
Make in India initiative
» Benefit of section 35AD for investments in the sunrise and advanced
technology areas
Goods and Services
Tax (GST) Council
• Reduced tax on EVs from 12% to 5% and on charger and charging stations
from 18% to 5% (effective 1 August 2019).
• Announced tax exemption on e-buses hired by public authorities (effective 1
August 2019).
State EV policies • Many states have drafted and notified their electric vehicles policies with
both fiscal and non-fiscal incentives. Depending on the states, support is
being provided for both manufacturing as well as vehicle demand creation.
Eighteen states have notified their EV policies (see Exhibit C1).
Exhibit C1Status of State Electric Vehicle Policy in India
Draft Notified www.rmi-india.org /
42Need for Advanced Chemistry Cell Energy Storage in India

Appendix D: Battery Energy
Storage Projects Being Developed
in India
Exhibit D1List of Energy Storage Projects Being Developed in India
34
Project Developer/
Sponsor
CapacityLocationStatus
Bharat Heavy
Electricals Ltd.
(BHEL)–Okaya Power
Group
410 kWh (Li-ion) DelhiUnder construction
BSES Rajdhani Power
Ltd. (BRPL)
6 x 674 kWh (Li-ion) DelhiUnder construction
BSES Yamuna Power
Ltd. (BYPL)
5 x 200 kWh (Li-ion
NMC and LFP)
DelhiUnder construction
Solar Energy
Corporation of India
(SECI)
2150 kWh/1650 kW
(Li-ion)
LakshadweepUnder construction
Solar Energy
Corporation of India
(SECI)–Himachal
Renewable Ltd.
2 MW Solar PV + 1000
kWh/1000 kW BESS
(Li-ion)
Himachal Pradesh Under construction
Sun Source Energy 1.95 MW Solar + 2.15
MWh BESS
LakshadweepUnder construction
Tata Power20 MW solar with 20
MW/50 MWh
Leh, LadakhUnder construction
Tata Power (TPDDL) &
Nexcharge
528 kWh/150 kW (Li-ion)New DelhiUnder construction
TERI-USASSIST-BRPL 240 kWh/120 kW (Li-
ion)
New DelhiUnder construction
TERI-USASSIST-BRPL 230 kWh/125 kW (Li-ion
and Advanced lead acid)
DelhiUnder construction
Central Electronics Ltd.
(CEL)
500 KWh/1,000 kW
(Electrochemical)
Uttar Pradesh Tendered
National Thermal Power
Corporation (NTPC)
17 MW Solar PV + 6.8
MWh/6.8 MW BESS
Andaman & Nicobar
Islands
Tendered www.rmi-india.org /
43Need for Advanced Chemistry Cell Energy Storage in India

Railway Energy
Management Company
Ltd. (REMCL)
14 MWh/7 MWNagpurTendered
Solar Energy
Corporation of India
(SECI)
160 MW Wind-Solar
Hybrid + 20 MWh/10 MW
BESS
Andhra Pradesh Tendered
Solar Energy
Corporation of India
(SECI)
20 MW Floating PV + 60
MWh BESS
LakshadweepTendered
Solar Energy
Corporation of India
(SECI)
20 MW Solar PV + 50
MWh/20 MW BESS
Leh, LadakhTendered
Solar Energy
Corporation of India
(SECI)
100 MW Solar + 150
MWh/50 MW BESS
ChattisgarhTendered
Solar Energy
Corporation of India
(SECI)
2,000 MWhTendered
Solar Energy
Corporation of India
(SECI)–ISTS
1,000 MWh/500 MW
(Electrochemical)
Pan-IndiaTendered
Solar Energy
Corporation of India
(SECI) Ltd.–HPSEBL
2.5 MW Solar Wind
Hybrid Project + 1,000
kWh/100 kW BESS
Himachal Pradesh Tendered
Tamil Nadu Generation
and Distribution
Corporation Ltd.
(TANGEDCO)
1 MW Solar PV + 3
MWh/1 MW BESS
TamilnaduTendered
ACME Cleantech
Solutions Pvt. Ltd.
270 kWh/250 kW
(Electrochemical)
Gurgaon, Haryana Commissioned
Gram Power3,000 kW
(Electrochemical)
RajasthanCommissioned
Imergy Power Systems 120 kWh/30 kW
(Vanadium Flow
Battery)
KarnatakaCommissioned
SciEssence
International
5 GJ (1,400 kWh/15,000
kW) GigaCapacitor
based (Electrochemical)
TelanganaCommissioned
Bharat Heavy
Electricals Ltd. (BHEL)
500 kW(Li-ion),
100kW(Advanced Lead
Acid), 50 kW( Flow)
TelanganaCommissioned
Central Electronics Ltd.
(CEL)–Exicom
160 kWh/40 kW
(Advanced Lead Acid)
Uttar Pradesh Commissioned www.rmi-india.org /
44Need for Advanced Chemistry Cell Energy Storage in India

Central Electronics Ltd.
(CEL)–Raychem RPG
350 kWh (Li-ion) and
150 kWh (Flow Battery)
Uttar Pradesh Commissioned
Central Electronics Ltd.
(CEL)–Raychem RPG
500 KWh/1,000 kW (Li-
ion)
Uttar Pradesh Commissioned
Electricity Department
of Government of
Puducherry
1,000 kWh/250 kW
(Electrochemical)
PuducherryCommissioned
Neyveli Lignite
Corporation Ltd. (NLC)
and Larsen & Toubro
(L&T)
20 MW Solar PV + 8
MWh/16 MW BESS (Li-
ion)
Andaman and Nicobar
Islands
Commissioned
PGCIL–Zhejiang Narada 250 kWh/500 kW
(Advanced Lead Acid)
PuducherryCommissioned
PGCIL–Zhejiang Narada 250 kWh/500 kW (Li-
ion)
PuducherryCommissioned
Tata Power (TPDDL)—
AES (Fluence)
10,000 kWh/10,000 kW
(Li-ion)
DelhiCommissioned
Andhra Pradesh
Eastern Power
Distribution Company
Ltd. (APEPDCL)
5 MW Solar PV, 4 MWh
BESS (Li-ion)
Andhra Pradesh Announced
Solar Energy
Corporation of India
(SECI)
2 x 21 MWh/7 MW Leh & Kargill Announced
National Thermal Power
Corporation (NTPC)
4 MW Solar PV + 1,000
kWh/1,000 kW BESS
DelhiAnnounced
National Thermal Power
Corporation (NTPC)
8 MW Solar PV+ 3.2
MWh/3.2 MW BESS
Andaman & Nicobar
Islands
Announced
National Thermal Power
Corporation (NTPC)
1,000 MWhPan-IndiaAnnounced
Panasonic India Pvt.
and AES India Private
Ltd.
10,000 kWh/10,000 kW
(Electrochemical)
HaryanaAnnounced
SECI & Andhra Pradesh
Southern Power
Distribution Company
Ltd. (APSPDCL)
2,500 kWh/5,000 kW Andhra Pradesh Announced
SECI and Karnataka
Solar Power
Development
Corporation Ltd.
(KSPDCL)
4 X 2,500 kWh/5,000
kW
KarnatakaAnnounced www.rmi-india.org /
45Need for Advanced Chemistry Cell Energy Storage in India

Sun Source Energy 4 MW Solar + 2 MW/1
MWh BESS
Andaman & Nicobar
Islands
Announced
Tamil Nadu Generation
& Distribution Company
(TANGEDCO)–Larsen &
Toubro (L&T)
125 kW
(Electrochemical)
Tamil NaduAnnounced
Tata Power100 MW Solar + 120
MWh/40 MW BESS
ChattisgarhAnnounced
SunCarrier Omega Pvt.
Ltd. & Gildemeister
45 kW (Electrochemical)Madhya Pradesh
Tata Power and
Delectrik
40 kW (Vanadium Redox
Flow)
Delhi
TMEIC Industrial
Systems India Private
Ltd.
750 kW (Li-ion) Karnataka www.rmi-india.org /
46Need for Advanced Chemistry Cell Energy Storage in India

Definitions
i. Advanced cell technologies include lithium-ion cells
and chemistries better than lithium ion available
at commercial scale such as sodium ion, zinc air,
flow batteries etc.
ii. India has launched the ACC PLI program with an
outlay of INR18,100 crores (US$2.5 billion), the
maximum incentive is fixed at 20% of the sale
price of the cell or INR2,000 (or quoted price if
lesser), whichever is lesser per KWh, bids
submission date has been extended to 14th Jan
2022. The total capacity at disposal is 50 GWh.
iii. The EV30@30 Campaign sets a collective
aspirational goal to speed up deployment and
reach a 30% sales share for electric vehicles by
2030 among the participating countries.
iv. Incumbent technologies refer to those currently
providing each of these services. For example,
large thermal generators currently supply
frequency regulation and ramping for renewable
integration; transmission and distribution
equipment is for system upgrades; diesel generator
sets and lead acid are for behind-the-meter
applications; and petrol, diesel, and CNG vehicles
currently serve the majority of mobile applications.
v. This TCO analysis compares a CNG bus and a
diesel bus with the e-bus model that is currently
operating in Pune. All buses are 12 meters in
length and air conditioned with an estimated life
of 10 years, and the e-bus has a 320 kWh battery.
The equipment and installation costs of the e-buses
share of an 80 kW AC charging station and a 150
kW opportunity charging station are included,
considering an average daily run of 225 km. Endnotes www.rmi-india.org /
48Need for Advanced Chemistry Cell Energy Storage in India

Endnotes
1. RMI Analysis
2. National Programme on Advanced Cell Chemistry
(ACC) Battery Storage, Ministry of Heavy Industry
and Public Enterprises, The Gazette of India, 2021,
www.heavyindustries.gov.in/writereaddata/
UploadFile/ACC%20Scheme%20
Notification%209June21.pdf.
3. National Statement by Prime Minister Shri
Narendra Modi at COP26 Summit in Glasgow,
Press Information Bureau, 2021, https://pib.gov.
in/PressReleasePage.aspx?PRID=1768712.
4. Ibid
5. India’s Electric Mobility Transformation: Progress
to Date and Future Opportunities, NITI Aayog and
RMI, 2019, www.rmi.org/insight/indias- electric-
mobility-transformation/.
6. Long-Term Energy Storage Outlook, BNEF, 2020.
7. RMI Analysis
8. 2020 World Air Quality Report, IQAir, 2020,
www.iqair.com/world-air-quality-report.
9. EV30@30, Clean Energy Ministerial, accessed on
12 December 2021, www.cleanenergyministerial.
org/campaign-clean-energy-ministerial/
ev3030-campaign.
10. Long-Term Energy Storage Outlook, BNEF, 2020.
11. Ibid.
12. Ibid.
13. Michael Lightfoot, “A 3-Step Plan for Carbon-
Neutral Cars,” World Economic Forum, January 13,
2020, www.weforum.org/agenda/2020/01/3-
step-plan-to-take-the-car-out-of-carbon-
emissions/
14. 2021 Lithium-Ion Battery Price Survey, BNEF, 2021.
15. Hall, W., Spencer, T., Renjith, G., and Dayal, S.,
The Potential Role of Hydrogen in India: A pathway
for scaling-up low carbon hydrogen across the
economy, The Energy and Resources Institute
(TERI), 2020. https://www.teriin.org/sites/
default/files/2021-07/Report_on_The_
Potential_Role_of_%20Hydrogen_in_India.pdf.
16. RMI Analysis.
17. Ibid.
18. Long-Term Energy Storage Outlook, BNEF, 2020.
19. India’s Electric Mobility Transformation, NITI
Aayog and RMI, 2019, https://rmi.org/insight/
indias-electric-mobility-transformation/.
20. India Leaps Ahead: Transformative Mobility
Solutions for All, NITI Aayog and RMI, 2017,
www.rmi.org/wp-content/uploads/2017/05/
NITI_ RMI_India_Mobility_Report_2017.pdf.
21. India’s Electric Mobility Transformation, NITI Aayog
and RMI, 2019, www.rmi.org/insight/indias-
electric-mobility-transformation/.
22. The Case for All New City Buses in India to be
Electric, Lawrence Berkeley National Laboratory,
2018. https://international.lbl.gov/publications/
case-all-new-city-buses-india-be.
23. Deepanshu Taumar, “Electric Vehicle Can See
30–40% Penetration by 2030: SIAM,” Economic
Times, 12 September 2017, https://auto.
economictimes.indiatimes.com/news/industry/
electric-vehicle-can-see-30-40-penetration-
by-2030-siam/60468095 .
24. India Energy Storage Database (IESDB), India
Energy Storage Alliance (IESA), https://indiaesa. www.rmi-india.org /
49Need for Advanced Chemistry Cell Energy Storage in India

info/initiatives/iesdb; “Solar Tenders & Auctions:
Tata Power Solar Wins SECI’s 20 MW Solar with
50 MWh of Battery Energy Storage Auction,”
Mercom India, 2021, https://mercomindia.com/
tata-power-wins-solar-battery-auction/; Shivam
Chauhan, “Overview of ESS Tenders & Projects
India,” Customized Energy Solutions, 2021,
https://indiaesa.info/media/downloadfiles/
SESI_-_Projects__Tender._674587245.pdf;
Energy Storage System, Roadmap for India:
2019-2032, India Smart Grid Forum, 2019,
http://www.indiaenvironmentportal.org.in/files/
file/SGF. pdf; “Procurement Document: Design,
Engineering, Supply, Construction, Erection,
Testing & Commissioning of 160 MW Solar-Wind
Hybrid Power Plant with BESS including 10 Years
Plant O&M under International competitive
bidding,” Solar Energy Corporation of India
Limited, 2018, https://www.seci.co.in/Upload/
Archives/160%20MW%20Hybrid%20SPD.
pdf; and “BSES Yamuna Power Limited Open
Tenders,” https://www.bsesdelhi.com/web/bypl/
open-tenders.
25. “World Bank Group Commits $1 Billion for Battery
Storage to Ramp Up Renewable Energy Globally,”
World Bank, 26 September 2018, https://
www.worldbank.org/en/news/press-
release/2018/09/26/world-bank-group-
commits-1-billion-for-battery-storage-to-ramp-
up-renewable-energy-globally.
26. RMI Analysis; Long-Term Energy Storage Outlook,
2020, BNEF; India Stationary Energy Storage
Market Report, 2019-2026, India Energy Storage
Alliance (IESA); Long Term Electricity Demand
Forecasting, Central Electricity Authority, August
2019, https://cea.nic.in/wp-content/
uploads/2020/04/Long_Term_Electricity_
Demand_Forecasting_Report.pdf; Expert
interviews with India Cellular and Electronics
Association (ICEA); World Economic Outlook:
A Long and Difficult Ascent, International
Monetary Fund. October 2020.
27. Ibid.
28. Hans Melin, The Lithium-Ion Battery End of Life
Market, World Economic Forum, accessed 17 May
2019, https://www3.weforum.org/docs/GBA_
EOL_baseline_Circular_Energy_Storage.pdf.
29. Second life for EV batteries: RWE and Audi
create novel energy storage system in Herdecke,
RWE, 28 December 2021 https://www.rwe.
com/-/media/RWE/documents/07-presse/rwe-
generation-se/2021/2021-12-28-second-life-
for-ev-batteries.
30. RMI Analysis.
31. Long-Term Energy Storage Outlook, 2020, BNEF.
32. Ibid.
33. IRENA (2018), Power System Flexibility for the
Energy Transition, Part 2: IRENA FlexTool
Methodology, International Renewable Energy
Agency, Abu Dhabi. https://www.irena.org/-/
media/Files/IRENA/Agency/Publication/2018/
Nov/IRENA_Power_system_flexibility_2_2018.
pdf. pdf?la=en&hash=B7028E2E169CF
239269EC9695D53276E084A29AE .
34. “Ministry of Heavy Industries sanctions 520
Charging Stations under the Phase-I of FAME India
Scheme,” Press Information Bureau, 7 December
2021, https://pib.gov.in/
PressReleaseIframePage.aspx?PRID=1778958 .
35. “670 new electric buses and 241 charging stations
sanctioned under FAME scheme,” Press Information
Bureau, 25 September 2020, https://pib.gov.in/
PressReleasePage.aspx?PRID=1658900 . Need for Advanced Chemistry Cell Energy Storage in India
(Part I Of III), NITI Aayog, RMI, and RMI India, February 2022.
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otherwise noted.
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