Projections: India and Battery Swapping Policy

The automobile market in India is on the verge of converting to electric vehicles because of the Indian government's relentless attempts to increase the penetration of the Electric Vehicle (EV) industry in the country. As of 2030, the city intends to have 30% of its vehicles run on electricity. However, the conversation about electric vehicles invariably turns to the infrastructure for charging. Plug-in charging and swapping are two possible concepts that have recently come up for discussion.

What exactly is Battery Swapping?

Using a technique called battery swapping, customers are able to swap out their depleted batteries for fully charged ones, allowing them greater flexibility. In order to reduce charging downtime and make EV adoption more convenient for drivers, this is a goal worth working towards. There are numerous advantages to changing your battery, including the following:

1. Reduced downtime for vehicles
2. Because of the limitations of urban space, it is simpler to put up and scale
3. Starts to ease the symptoms of "Range anxiety"
4. Improves the capacity of various participants in the EV ecosystem to communicate with one another.
5. EVs now cost less up front because of the lower initial investment.
6. Safety problems linked with charging are eliminated.
   

Battery swapping, however, comes with a number of difficulties that could impede the widespread adoption of electric vehicles.

1. Standardization of batteries for interoperability could put an end to battery innovation.
2. For companies with a wide variety of cars, it's difficult to implement.
3. In the beginning, financing new technologies may be risky, limiting the amount of capital that can be injected into the system.
4. The success of battery swapping models may be influenced by factors like as geography and demographics.
   

NITI Aayog, India's leading think tank, has come up with a proposed battery swapping policy that would be finalised by the end of the year in order to address these issues and enable wide-scale adoption of electric vehicles.

India's carbon footprint can be reduced further by incorporating renewable energy into the EV sector as a result of a transition to electric vehicles.

Used EV batteries can be repurposed for a second life in fixed applications such as solar-powered battery swapping stations and mobile energy storage applications with roughly 70-80% of their initial capacity.

The exchanging market in India is expected to produce USD 6.1 million in sales by 2030, growing at a CAGR of 31.3%.

Most e-2Ws on the market today have detachable batteries that can be charged either by plugging them in or by swapping out the batteries they're in.

Renting an e-scooter from Gurugram-based start-up Zypp ranges from INR 109 for a day to INR 3,600 for a month. The car has a range of 75 kilometres and a single charge costs INR 10.

It costs INR 220 to exchange an e-rickshaw once, and it costs INR 400 for additional swaps within 24 hours.

The Bharat Petroleum Corporation Limited (BPCL) will cover the cost of twin 1.5 kWh Li-ion batteries for each e-rickshaw under the 'e-drive initiative,' and the driver will only have to pay a usage fee of INR 350–450 every exchange, which typically offers a driving range of 50–55 kilometres.

In India, commercial fleet owners in the e-2W and e-3W categories, which experience significant vehicle usage during operation hours, may find battery swapping to be the most cost-effective option for efficient fast charging infrastructure. Additional money can be generated by integrating second-life EV batteries into Battery Swapping Station (BSS) models.

If this works out, what are the requirements?

Battery switching success depends on interoperability. Interoperability means batteries are compatible with different EVs' electric equipment. EV standards can make this easier- standardise technical characteristics and performance standards.

Standardization must be done carefully to avoid destroying innovation and preventing future alternatives.

The Policy Draft criteria include:

• This policy only supports 'Advanced Chemistry Cells (ACC)' batteries.
• This must-have outperforms FAME-II EV batteries.
• Battery vendors must show end-to-end compatibility with agency approval.
• The manufacturer must verify these batteries are BMS-enabled.
• This prevents thermal runaways.
• Swapable batteries must include IoT-based monitoring, immobilisation, and remote monitoring for safety and security.
• To allow life-cycle traceability and centralised monitoring, a unique identification number (UIN) is provided to both batteries and battery switching stations. This tamper-proof UIN maintains battery use and performance history.
  

There are certain infrastructure requirements mentioned:

• BIS-approved standards and ARAI clearance will be used to test and certify batteries for EVs.
• To avoid electrical difficulties, a thorough testing process must be followed.
• The Ministry of Power or BIS will authorise safe and cost-effective BCS and BSS infrastructure.
• BSS/BCS equipment must be certified by NABL or another recognised entity.
• Charging infrastructure must follow CEA or DISSCOMS guidelines.
  

Points about sharing, communicating data:

• Battery management relies on data.
• BIS-approved communication protocols must be implemented, and Open Charge Point Protocol (OCPP) might be used.
• Data-sharing partnerships between battery manufacturers are encouraged to improve battery health and performance.
• Providers must only track pre-defined data, and government authorities can access it at any moment.
• Considering user privacy, industry players must follow a non-restrictive regulation.
  

Models: BaaS business models vary. These models differ in coverage and ecosystem responsibility. Models might range from single-entity integration to numerous agencies catering to distinct battery swapping ecosystem elements. Future BaaS models must enable for flexibility, stakeholder cooperation, and broad adoption.

Budgeting: Fiscal capacity drives large-scale EV adoption. The Indian government took numerous steps to help consumers. This regulation intends to level the playing field for EV business models with fixed or swappable batteries while expanding the BaaS model.

• EVs with swappable batteries should receive Kilowatt-hour-based incentives.
• Revision or development of a new subsidy programme is needed for flawless payout.
• The plan may also outline qualifying requirements for subsidies and minimum contract period for ongoing switching services.
• Subnational governments can offer incentives.
• BCS electricity costs are high - the public and captive BCS must follow the EV charging infrastructure rules.
• For Kirana shops and commercial premises, the relevant agency's tariffs will be levied.
• The programme seeks for state governments to provide land at a reduced and promotional cost to facilitate large-scale public BCS.
• The strategy also advises removing the difference GST rates for lithium-ion batteries (18%) and EV supply equipment (5%).
  

Battery management: Since EV batteries contain toxic chemicals, life-cycle management is vital to their 'green' status. A battery life-cycle plan is crucial.

• BIS should create battery durability and performance regulations.
• MoEFCC or BIS will define ownership and obligation. Battery Management rules will address EPR in depth.
• Draft Battery Waste Management Rules, 2020 govern the collection and reuse of used batteries.
• BIS will create guidelines for reusing EV end-of-life batteries.
  

Implementation:

• This policy only covers e-2Ws and e-3Ws. The BSS implementation is staggered, with phase-1 prioritising cities with more over 40 Lakh people (years 1-2).
• Phase 2 includes cities exceeding 5 million and state capitals (years 2-3).
• Transport departments facilitate EV registration. Municipal departments must allocate BSS land.
• State Electricity Regulatory Commissions provide tariff incentives and access.
• DISCOMS should provide enough power for BSS setup.
• A single-window site must be created to help with BSS setup, covering land allotment, energy supply, trade permits, etc.
• Nodal authorities could also consider mandating application clearance within 5 days.
  
  

Although the proposed policy is a good start, difficulties remain.

Battery changing has both benefits and drawbacks. Private entities in China and the U.S. have tested battery switching.

Nations first focused on developing independent charging networks, automaker charging networks, charging in malls, commercial venues, etc. Geography and demography also affect the policy's success.

Places with limited daily driving range and population density may not be suitable to battery changing / swapping. Countries that successfully shifted to electric cars should be examined for policy advice.

The government must standardise e-2Ws and e-3Ws batteries to increase their market adoption and eliminate friction between the vehicle OEM, battery vendor, and BS service provider. To guarantee customer confidence, BS service providers must emphasise the dependability and safety of swappable battery packs. The government should help set safety and reliability criteria for the batteries.

Before launching battery swapping networks, all these considerations should be considered. Otherwise, this policy might join the list of unsuccessful ones, this is our take on Battery Swapping Policy, what is yours?