Sunday, December 10, 2023

Energy storage: What’s Driving the Growth?

Sudeshna Das is director at ComConnect Consulting

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Increased automation in C&I segment with scattered locations of IT offices and data centres in Tier 2 and Tier 3 cities makes use of UPS mandatory in India. This will lead to a healthy growth (10-15 per cent) in this segment.

Renewable integration, especially solar PV and wind, as well as the government’s thrust on electric vehicles (EV) and e-rickshaws already make this market very attractive.

Telecom is another promising segment for battery use, but newer technologies like Li-ion and flow batteries are giving tough competition to use of lead-acid batteries for telecom towers. Expansion of the railway network, the ambitious target of metro trains and an introduction of bullet trains make railways an attractive segment with growth prospect of 4 per cent for lead-acid battery manufacturers.

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In India, Li-ion batteries are emerging as an environment-friendly, rechargeable power source in comparison to conventional lead-acid, nickel-cadmium and nickel-metal-hydride batteries. These are increasingly being used in consumer electronics products (such as smartphones and tablets) and healthcare equipment (like surgical devices and respirators). With continuing technological developments, Li-ion batteries are also being used in the automotive industry, particularly in electric vehicles. However, in the absence of proper domestic manufacturing, Indian manufacturers need to import Li-ion batteries from other Asian countries like China, Taiwan and South Korea.

According to a TechSci report, the Li-ion batteries market in India will witness double-digit growth at over 35 per cent annually till 2020. The government’s efforts to minimise carbon emissions and toxicity level in the environment are likely to drive the adoption of Li-ion batteries across major end-use industries including consumer electronics and automotive.

In addition, the government has announced tax exemption on electric vehicles powered by Li-ion batteries, which is anticipated to drive the market further. Owing to their compact size, lightweight and high durability, Li-ion batteries are expected to witness wider adoption in telecom and data communication applications as well as energy storage systems.



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