NITI Aayog releases draft new battery swapping policy for electric vehicles: Details here

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India is moving towards its goal of net-zero carbon emissions by 2070. To boost this process, NITI Aayog has come forward with a draft battery swapping policy. The battery swapping policy was first announced in the Union Budget 2022 speech. Now NITI Aayog is seeking suggestions from stakeholders with the announcement of the new draft. The government has already given extensive incentives to push the EV segment in the country. Schemes such as FAME I and II, and schemes such as the Production Linked Incentive (PLI) for the National Program on Advanced Cell (ACC) Battery Storage (NPACC). State governments are also introducing more local policies to promote EV adoption.

NITI Aayog held an inter-ministerial discussion in February 2022 to prepare the Battery Swapping Policy Framework. Following this discussion, NITI Aayog held pre-draft stakeholder discussions with a wide spectrum of stakeholders representing Battery Swapping Operators, Battery Manufacturers, Vehicle OEMs, Financials. Institutes, CSOs, Think Tanks and other experts.

Battery swapping is an option that involves exchanging a discharged battery for a charged one. Battery swapping de-links the vehicle and the fuel (in this case the battery) and therefore 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 than other automotive segments in which it can be implemented mechanically.

View draft of new battery swapping policy Here.

After all these deliberations and taking some inputs from the concerned stakeholders, NITI Aayog has drafted the Battery Swapping Policy.

Primary Objectives of Battery Swapping Policy

  1. Promoting battery swapping with Advanced Chemistry Cell (ACC) batteries to reduce the cost of batteries from the upfront cost of purchasing EVs, thereby promoting EV adoption.
  2. Provide flexibility to EV users by promoting the development of battery swapping as an alternative to charging facilities.
  3. Establish the principles behind technical standards that will enable interoperability of components within the battery swapping ecosystem without impeding 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 between battery providers, battery OEMs and other relevant partners such as insurance/financing, thereby encouraging the creation of an enabling ecosystem.
    To provide integrated services to the end users.
  6. Promote better lifecycle management of batteries, including maximizing battery usage during their usable lifetime, and end-of-life battery recycling.

According to the NITI Aayog report, battery swapping offers three major benefits. These include time, space and cost-efficiency. Furthermore, 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 in February 2022 to formulate a robust and comprehensive battery swapping policy framework. 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.

Draft for new battery swapping policy for EVs released after NITI Aayog: Details first appeared here on BGR India.

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