India is moving towards its target of net-zero carbon emissions by 2070. In order to boost this process, Niti Ayog has come forward with a Draft Battery Swapping Policy. The battery swapping policy was first announced at the Union Budget 2022 speech. Now, Niti Aayog is looking for suggestions from stakeholders with the announcement of the new draft. The govt has already instituted broad incentives to push the EV segment in the country. Schemes such as FAME I and II, and the Production Linked Incentive (PLI) for National Programme on Advanced Cell (ACC) Battery Storage (NPACC). The State governments are also introducing more local policies to promote EV adoption.
NITI Aayog held an inter-ministerial discussion to formulate a Battery Swapping policy framework in February 2022. Following this discussion, NITI Aayog held a pre-draft stakeholder discussion with a wide spectrum of stakeholders representing Battery Swapping Operators, Battery Manufacturers, Vehicle OEMs, Financial Institutions, CSOs, Think Tanks, and other experts.
Battery swapping is an alternative that involves exchanging discharged batteries for charged ones. Battery Swapping de-links the vehicle and fuel (Battery in this case) and hence reduces the upfront cost of the vehicles. Battery swapping is used for smaller vehicles such as 2 and 3-wheelers which have smaller batteries that are easier to swap compared to other automotive segments wherein the same can be implemented mechanically.
Check out the new battery swapping policy draft here.
Following all these deliberations and after taking some inputs from relevant stakeholders, NITI Aayog has drafted the Battery Swapping Policy.
Primary objectives of Battery Swapping Policy
1. Promote swapping of batteries with Advanced Chemistry Cell (ACC) batteries to decouple battery costs from the upfront costs of purchasing EVs, thereby driving EV adoption.
2. Offer flexibility to EV users by promoting the development of battery swapping as an alternative to charging facilities.
3. Establish principles behind technical standards that would enable the interoperability of components within a battery swapping ecosystem, without hindering market-led innovation
4. Leverage policy and regulatory levers to de-risk the battery swapping ecosystem, to unlock access to competitive financing.
5. Encourage partnerships among battery providers, battery OEMs and other relevant partners such insurance/financing, thereby encouraging the formation of ecosystems capable of
delivering integrated services to end users.
6. Promote better lifecycle management of batteries, including maximizing the use of batteries during their usable lifetime, and end of life battery recycling.
According to the report by Niti Aayog, battery swapping offers three key advantages. These include time, space, and cost-efficiency. Further, Battery Swapping provides a level playing field for innovative and sustainable business models such as ‘Battery As a Service’.
NITI Aayog held an inter-ministerial discussion to formulate a robust and comprehensive Battery Swapping policy framework in February 2022. NITI Aayog also held an extensive pre-draft stakeholder discussion with a wide spectrum of stakeholders representing Battery Swapping Operators, Battery Manufacturers, Vehicle OEMs, Financial Institutions, CSOs, Think Tanks, and other experts.
India is moving towards its target of net-zero carbon emissions by 2070, and the government has instituted incentives to push EV adoption. Government is looking for suggestions from stakeholders on a draft policy to establish guidelines for battery swapping. Battery swap is an alternative that involves exchanging discharged batteries for charged ones. Battery