Innovations in battery cooling, including liquid-cooled systems, are making inroads into stationary energy storage, while second-life batteries and recycling initiatives are becoming crucial
In a landmark announcement at COP26, India outlined its ambitious commitment to reduce the carbon intensity of its economy by 45 percent by 2030. India has set formidable targets to achieve this, including generating 500 GW of non-fossil fuel-based energy by 2030, ensuring that 30 percent of new vehicle sales are electric by 2030, and achieving net-zero emissions by 2070.
A critical component in this transition is the adoption of battery energy storage systems, with estimates suggesting an annual demand ranging from approximately 104 GWh in a conservative scenario to 260 GWh in an accelerated one.
Advanced Chemistry Cell (ACC) Batteries:
Traditionally, the demand for energy storage was dominated by lead-acid batteries, but a paradigm shift is expected by 2030, with Advanced Chemistry Cell (ACC) batteries taking a significant share. ACC batteries offer higher energy density and longer life cycles, addressing some of the concerns related to cost and safety that were prevalent in earlier years.
Government Initiatives:
To expedite the transition, the Indian government has introduced key initiatives. The Production-Linked Incentive Scheme by the Ministry of Heavy Industries focuses on manufacturing ACC battery storage, targeting a capacity of 50 GWh.
Additionally, the Union Cabinet has approved Viability Gap Funding, covering up to 40 percent of the capital cost for the development of 4 GWh of Battery Energy Storage Systems (BESS). This capacity aims to store renewable energy for power applications such as peak power shaving, enhance grid stability, and provide ancillary services.
On the electric vehicle (EV) front, robust support is provided through the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) subsidies. Several state governments have also implemented EV policies to drive demand and attract manufacturing within their jurisdictions.
Technological Advancements:
Despite initial concerns about higher costs and safety, rapid technological advancements in the last decade have addressed these issues. Research and development efforts continue, focusing on further increasing energy density without compromising safety. Innovations span both cell and battery pack levels, including advancements in fast-charging capabilities for mobility applications.
Additionally, there is a crucial emphasis on utilising environmentally friendly materials in batteries, leading to the development of cobalt-free Li-Ion batteries and exploring alternatives like sodium-sulphur and metal-air batteries.
The current Li-ion cell prices have reached approximately $100 per kWh, and the expected life cycle is being targeted at above 6000 cycles in a typical stationary energy storage application at 0.5C/0.5C. The emergence of solid-state batteries, albeit in the early stages of development, promises a significant paradigm shift as and when they reach the market in the next couple of years.
Battery Chemistry and Innovations:
Lithium-ion batteries, particularly within the Li-ion realm, dominate the energy storage landscape. Various chemistries, such as LFP, NMC, and NCA, cater to different applications.
Globally, diverse battery chemistries are being explored, such as sodium-ion batteries developed by Hina Battery Technology in China and Na-ion batteries developed by KPIT in India for electric scooters. Specific applications, like vanadium redox flow batteries, are gaining traction for longer-term energy storage, although improvements in round-trip efficiency are actively being pursued.
Innovations in battery cooling, including liquid-cooled systems, are making inroads into stationary energy storage, while second-life batteries and recycling initiatives are becoming crucial. Given the limited availability of materials and a supply chain concentrated in a few countries, reusing and recycling batteries is gaining prominence globally.
India's commitment to a sustainable energy future is evident through its multifaceted approach to battery energy storage. Government initiatives, technological advancements, and a focus on environmentally friendly solutions collectively underscore India's stride towards a cleaner, greener, and more energy-efficient future. As the world watches, India is poised to play a pivotal role in shaping the landscape of global energy storage technologies.
(Pankaj Sharma, Co-Founder and Director at Log9 Materials)