News: NITI Aayog has recently released the draft battery swapping policy.
What was the need of draft battery swapping policy?
First, major auto manufacturers are agreed on the view that electric vehicles shall be the mainstay of future mobility in India.
Second, as per the reports by India Energy Storage Alliance projects Indian EV and EV battery markets shall grow at a CAGR of 36% and 30%, respectively, in the next four years.
Third, Niti Aayog estimates EV sales penetration in India at 80% for two-wheelers (2W) and three-wheelers (3W), 70% for commercial cars, 40% for buses, and 30% for private cars, by 2030.
Fourth, there is a policy predictability and political will to enact the EV movement in the country. Majority of the states have already come up with dedicated EV policies.
Thus, battery swapping has tremendous potential to create new economic opportunities for various stakeholders and the nation. It propagates the concept of Battery as a Service (BaaS).
What are benefits associated with battery swapping?
First, in India vehicles used in the services by e-commerce, food and grocery delivery companies will form a good number of EVs. Both companies and gig workers can’t afford their vehicles to sit idle for 4-6 hours every day for routine charging. The battery swapping will cost effectively transforms batteries from a one-time capital expenditure to a recurring operating cost (pay per use).
Second, battery swapping will require a dense swapping station network across the city. This will trigger new ventures and enable small business owners like kirana stores and restaurants to get benefitted from this opportunity.
Third, battery swapping shall present OEMs with an opportunity to generate revenue steam for the vehicle’s entire lifetime.
Fourth, battery swapping stations, requiring less than 20% of land area vis-à-vis charging stations.
Fifth, Most people owning an EV tend to charge their vehicles overnight after coming back from work. Battery swapping can help balance the load on the grid by spreading the vehicle charging hours across different times of the day.
Sixth, It will provide an opportunity to India to globalise the cost-efficient indigenous battery swapping technologies and take economic benefits.
Source: This post is created based on the article “Swap the Battery And Get Going In Your EVs” published in The Times of India on 14th June 2022.