The Centre is planning to come out with a battery swapping policy with interoperability standards for Electric Vehicles (EVs).
Finance Minister Nirmala Sitharaman said that considering space constraints in urban areas for charging stations at scale, a battery swapping policy will be brought out and inter-operability standards will be formulated. The private sector will be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service’. This will improve efficiency in the EV ecosystem, she said.
The budget aimed at strengthening the EV industry ecosystem, which will spur the demand for green vehicles, such as electric 2-wheelers and 3-wheelers, cars and buses, said Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV).
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He added that these announcements would help to develop EV infrastructure and increase the use of EVs in public transportation. It would motivate businesses engaged in delivery and in car aggregation to incorporate EVs into their fleet. Mr. Gill added this would spur companies to venture into the battery-swapping business.
Shamsher Dewan, VP & Group Head - Corporate Ratings, ICRA, said if implemented efficiently, these steps were likely to go a long way in reducing range anxiety with regard to EV adoption while also aiding economies of scale in battery production. “The inclusion of energy storage in the harmonised List of Infrastructure will facilitate cheaper finance for EV battery makers,” he said.