India struggles with a dirty secret: its reliance on fossil fuels. However, a quiet revolution is brewing. On the outskirts of Chennai, a Coca-Cola factory hums with activity, powered not by a diesel generator, but by a giant battery. This is just a glimpse into India’s burgeoning battery storage industry, a crucial element for the country’s clean energy transition.
India’s lithium-ion battery storage capacity is minuscule compared to the global market, representing a mere 0.1%. But the sector is experiencing an explosive growth. A third of India’s total battery infrastructure came online this year alone.
“Orders are skyrocketing,” exclaims Ayush Misra, CEO of Amperehour Energy, the company behind the Chennai project. “It’s a thrilling time for battery storage providers.”
Currently, India boasts 100 megawatts of battery storage capacity, with hydropower contributing another 3.3 gigawatts of clean energy storage. However, the government estimates a staggering need for 74 gigawatts by 2032, potentially doubling according to experts.
Challenges remain. Customer hesitation and the high cost of battery systems compared to coal are hurdles. Additionally, China’s dominance in the battery supply chain exposes the sector to geopolitical risks.
However, the market is optimistic. Major Indian companies are making significant investments. Reliance Industries announced a massive 5,000-acre battery factory in Gujarat, while Goodenough Energy pledged $53 million for a 20 million kilowatt-hour facility in Jammu and Kashmir.
Furthermore, the myth of clean energy’s high cost is being debunked. Combined with storage, renewables are now cheaper than new coal plants. Global battery prices are plummeting, potentially making them even more competitive with traditional sources like coal, hydropower, and nuclear.
The Indian government is fueling the fire, announcing a $452 million program to support an additional four gigawatts of battery storage by 2031. India’s battery boom is a promising sign for a cleaner energy future.
Reference- Economic Times article, Mercom India, PV Magazine India, Business Insider