Schedule a Call Back
IESA proposes key reforms for India's Energy Storage Sector ahead of budget session
Industry News- Jan 23,24
This initiative aims to extend electricity access across the country. In the previous year's Union Budget, Viability Gap Funding for 4GWh of projects was announced as part of a $4 billion 'Green Growth' package.
The government is actively supporting the development of large-scale energy storage facilities, recognising them as a crucial tool to integrate the targeted 500GW of non-fossil fuel energy generation by 2030. This initiative aims to extend electricity access across the country. In the previous year's Union Budget, Viability Gap Funding for 4GWh of projects was announced as part of a $4 billion 'Green Growth' package dedicated to capital investments in energy transition and net-zero initiatives.
While the trade association warmly welcomed the previous year's budget, the India Energy Storage Alliance (IESA) recently proposed changes to tax regimes, emphasising their potential to boost downstream demand and encourage domestic companies to play a more significant role in equipment manufacturing and supply.
Dr Rahul Walawalkar, the founder and president of IESA, expressed optimism about India becoming a global hub for the advanced battery manufacturing ecosystem. IESA's recommendations to the finance minister for the upcoming Budget Session include:
1. 10-year Tax Holidays: Battery storage projects connected to renewable energy sources, either standalone or hybrid, and transmission-connected battery storage should be eligible for tax holidays.
2. Free Trade Agreement Imports: Exemptions on customs and excise duties for imported energy storage system goods from countries with which India has free trade agreements.
3. Uniform Goods and Sales Tax at Low Rate: Proposing a uniform low rate of 5% Goods and Sales Tax (GST) on all batteries, as opposed to the current 18% for lithium-ion batteries. This change could significantly facilitate the expansion of large-scale energy storage deployment.
4. Remove Double Charging: Advocating against levying charges for using the grid twice, addressing issues like Electricity Duty and Cross Subsidy Surcharges.
In addition to these recommendations, IESA calls for more direct support to the battery and storage system manufacturing sectors, suggesting an extension of the Production Linked Incentive (PLI) scheme. They propose doubling the PLI to 100GWh and imposing duties on imports of cells and supply chain components to enhance competitiveness for domestic producers.
Furthermore, IESA urges funding for domestic R&D initiatives and the launch of programs to develop a skilled workforce capable of contributing to the international industry and addressing skill gaps within India. The alliance also recommends the establishment of a central institution, the National Institute for Energy Storage, to advance India's R&D roadmap in this sector.
Despite similar requests in the previous year, IESA remains optimistic about the government's direction, considering the overall positive impact of the previous budget. Recent research suggests that with around 60GW of energy storage likely to be deployed in India by 2029-2030, storage will be a major disruptor in the country's electricity sector, with pumped hydro energy storage playing a significant role.
Source: Energy Storage News
IESA
National Institute for Energy Storage
Green Growth
India Energy Storage Alliance
Viability Gap Funding
Related Stories
Electrical & Electronics
Demand surge in Indian battery market underscores pressing need for action
The domestic market lacks raw materials. India does not possess abundant lithium mining resources, says Yvonne Zhang
Read moreElectrical & Electronics
IESA launches comprehensive report on semiconductor and ESDM policies in India
The report is a comprehensive and updated guide to the policies and incentives offered by the Government of India and 14 states for the Semiconductor and ESDM sector.
Read moreElectrical & Electronics
IESA proposes key reforms for India's Energy Storage Sector ahead of budget session
This initiative aims to extend electricity access across the country. In the previous year's Union Budget, Viability Gap Funding for 4GWh of projects was announced as part of a $4 billion 'Green Gro..
Read moreRelated Products
Power Conversion Systems
POWER GENERATION & ENERGY CONSERVATION PRODUCTS
POM Systems & Services Pvt Ltd offers a wide range of
PCS power conversion systems energy storage.
Hot Water Generators
POWER GENERATION & ENERGY CONSERVATION PRODUCTS
Transparent Energy Systems Private Limited offers a wide range of Hot water generators - Aquawarm Superplus.
Scrap Baling Press
POWER GENERATION & ENERGY CONSERVATION PRODUCTS
Fluid Power Machines offers hydraulic scrap baling press. Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
