India might turn out to be third largest marketplace for utility-scale batteries by 2030: IEA

India is prone to turn out to be the world’s third-largest marketplace for utility-scale batteries by 2030 with capability additions projected to speed up significantly over the following seven years to achieve practically 9 GW, supported by price reductions, in accordance with a report by IEA (Worldwide Power Company).

• Additionally learn: India provides 24 GW of photo voltaic PV manufacturing capability in 2023: Report

Photo voltaic PV plus battery storage is already extra cost-competitive than coal in India, a development anticipated to proceed. The nation’s rising PV capability will result in increased short-term flexibility necessities, boosting the utility of power storage. The federal government has mandated that wind and photo voltaic PV initiatives should incorporate at the least 5 per cent of their put in capability with storage.

The report underscores that if India meets all its government-set targets on schedule, photo voltaic PV and battery storage will turn out to be the spine of the nation’s energy grid by 2050. Batteries will cost throughout peak photo voltaic hours and discharge throughout night peak hours.

Globally, the upfront prices of utility-scale battery storage with a four-hour length are projected to drop from a world common of $290/kWh in 2022 to $175/kWh in 2030, a 40 per cent discount. India’s strong development within the battery storage market is driving vital price reductions. In India, sturdy development within the battery storage market allows deep price reductions.

Developments in battery chemistry and manufacturing have led to a exceptional decline in common battery prices from $1,400/kWh in 2010 to below $140/kWh in 2023, one of many quickest price declines for any power know-how.

The main market

China turned the main marketplace for battery storage two years in the past, with its share of annual world additions rising from roughly 20 per cent in 2019 to 55 per cent in 2023. The US is the second-largest battery storage market, with additions doubling year-on-year to over 8 GW in 2023. Put in battery storage capability within the European Union grew by 70 per cent in 2023, with annual additions reaching practically 6 GW.

The report notes that India, with its power storage targets and monetary help, has the potential to turn out to be one other main marketplace for battery storage.