With growing solar PV installations and further gaining up in renewable power capacity additions clubbed with enticing business for electric vehicles in India, the rationale behind the battery energy storage systems (BESS) is certain to embellish and gather momentum in the country says the ResearchAndMarkets in its news report.
The research firm notes that the storage market is already making sustained gains and is expected to flourish with near term market size of close USD 160 Billion and grow further to USD300 Billion by 2030.
The firm in the report stated – this entire energy storage market shall see BESS being the largest contributor in terms of share of above 50% globally. This shall be no different in India either and shall not be a surprise that it might stand scaled up to 70-75% in the country. Having said that with India being still in the nascent phase for the BESS there are certain push elements desired for the market gain momentum and unwind its entire market potential in the country for there are terrific benefits for its application. Because of the positives of BESS, recently Tata Power commissioned 10 MW grid-scale energy storage system which is the largest BESS project in South Asia, signifying the growing market potential of energy storage in India.
With electric vehicles market bursting up the scene coupled with increasing solar PV installations in the country business case for BESS does call for a deep dive to project opportunities for different value chain players likely to be engaged within the segment. America’s energy firm AES Corp. expects USD 50 Billion opportunities in Indian energy storage market which shows companies are conducting studies for assessing opportunity scale which is a promising sign for Indian battery market.
Business Case for Battery Market in India
- The government of India plans to add 100 GW of solar capacity in the country by 2022 needs storage for making large scale solar power installations completely grid interactive.
- 40 GW of roof-top installations to be achieved until 2022 demands for small-scale solar PV installations be utilized round the clock.
- High adaptability of electric vehicles projected in India and changing dynamics of the transportation sector in the country with government planning to provide rebates of up to INR 2.5 Lakh, bringing EV under the umbrella of priority sector lending and lowering interest rates on loans will help push battery market in India.
- Rising electricity demand in India with installed capacity likely to cross 600 GW by 2030 calls for better demand response which BESS can assure.
- Falling trajectory of battery prices globally and further fall expected in near term helping cost economics of adaptation of BESS in India.
- AES America’s energy firm, sees USD 50 billion opportunities in Indian energy storage market.
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