New Delhi
Establishing a manufacturing ecosystem for sodium ion batteries (SIBs), which can be effectively used for grid storage projects, is critical and should get government support through viability gap funding and under the Production Linked Incentive (PLI) scheme, a government supported report said.
The report was prepared under the Accelerating Smart Power and Renewable Energy in India (ASPIRE) programme with UK’s Foreign, Commonwealth and Development Office (FCDO). ASPIRE is a bilateral programme implemented by the FCDO in association with the Ministries of Power (MoP) and New and Renewable Energy (MNRE).
The report pointed out that, even as the initial demand for BESS has been predominantly fulfilled by lithium-ion batteries (LIBs), there are several risks associated with them.
Concerns surrounding the LIB supply chain, environmental impact, and safety, coupled with the growing demand for battery energy storage system (BESS) amid a global energy transition, have led to the need for identifying and developing alternative technologies.
Government support
By closely monitoring the SIBs development and cost trends, India can leverage VGF to accelerate its adoption and create a more robust and holistic energy storage ecosystem, it suggested.
“Currently, the Indian government is providing VGF for BESS, but with the oversupply situation of LIBs, costs are declining drastically. Thus, the Indian government may consider reallocating some of the funds from the VGF support for BESS towards SIB specific initiatives,” it added.
The provisions of VGF to facilitate the development and adoption of SIBs can encourage R&D efforts and enhance manufacturing capabilities.
KPMG was the lead implementation advisor to FCDO for this programme.
Besides, SIBs have a similar manufacturing process to LIBs and utilise raw materials that are abundant in India. Thus, they are an attractive option to support the development of battery manufacturing in India.
Achieving economies of scale and technological advancements will make SIBs a more cost-effective option compared to LIBs. The PLI scheme for promoting domestic manufacturing for ACC batteries is already active, with 40 GWh awarded and a further 10 GWh to be allocated.
“Additionally, 5 GWh of capacity has been reserved for ‘niche’ technologies. A share of this upcoming PLI capacity can be allocated for the development of SIB manufacturing facilities,” the report recommended.
Skills & standards
The report also emphasised on developing standards for the SIB sector as well as a skill development programme.
Ensuring SIBs manufactured in India meet relevant technical and quality standards will be critical to ensure that they are trusted in the market. To enable this, clear technical and quality standards for SIBs will need to be developed, it added.
These standards should be accompanied by clarity on testing methodology and evaluation criteria and should be developed in conjunction with inputs from industry bodies and academic institutions to ensure relevant technology considerations are incorporated and the standards developed are as comprehensive as possible, the report suggested.
Developing a workforce that is familiar with SIBs and has the requisite sectoral skills is essential for the long-term viability of the sector. SIB-related training and capacity building can be covered under relevant energy storage systems (ESS) schemes.
These training measures can include awareness creation to improve knowledge of the technology and its capabilities, an overview of use cases and applications, and specific technical sessions where applicable, it has recommended.
