By: Varun Goenka, CEO, and Co-founder, Chargeup
The Government of India has been focusing on EVs as a core component of the strategy to cut down emissions. To make EVs more affordable and help users overcome range anxiety, the government has been focusing on battery swapping as a key ecosystem component. It has come out with the Draft Battery Swapping Policy which is currently under public review and is expected to become the defining legislation for service providers in this domain in India in the years ahead.
The two core objectives of the upcoming Battery Swapping Policy are:
- Enabling faster adoption of EVs by lowering the cost of ownership and lifecycle costs.
- Standardization of various norms to enable smoother battery swapping services across India.
The draft policy has envisaged enabling battery service providers to operate via two customer-centric channels which will cater to different buyer preferences with cost benefits for both.
Battery-as-a-Service (BaaS) – While all of us need to switch to EVs, there are many who don’t use vehicles for commercial runs. Energy service providers can offer a ‘Battery-as-a-Service’ solution by leasing the batteries to them. This process will ensure that the driver remains the owner of the vehicle, but the battery ownership is with the energy operator. This can significantly reduce vehicle costs, and make EVs more appealing to the public.
Battery swapping services (BSS) – This is a highly appealing option for drivers who are in the mobility sector, offering last-mile commute or logistics services to their customers. It will make them procure EVs at lower rates without any batteries, and also eliminate the range anxiety as they can swap the batteries every time they get discharged. This enables them to earn much more from their vehicle and lead a better quality of life.
Another key aspect of the policy is that it puts energy operators at the forefront of the system. They are going to be the connectors between operators and drivers. Thus, the energy operators will not only build the battery-swapping infrastructure but will also serve as the catalysts for the seamless growth of the ecosystem.
The battery-swapping policy is a path-breaking legislation that aims to address the three core concerns of the entire ecosystem and make it successful for all stakeholders. These are as follows.
Battery standardization – One of the key reasons for the policy to be formulated, standardization of batteries by OEMs has been mentioned as a condition for them to be eligible for subsidies. There are guidelines related to the mechanical fitment of the battery, battery dimensions, size, weight, communication protocols, etc. It is expected that these guidelines will lead to a superior driver experience, optimum asset utilization, and eventual cost benefits.
Interoperability – There are two dimensions to this area of concern. First is the interoperability between different vehicle makers that enables the use of the same battery for different vehicles. The other aspect is to ensure interoperability between different energy operators. For instance, a battery offered by one energy operator can be swapped with the battery of another, and so on. While this sounds great, certain operational points would need further clarity and coordination before such interoperability can be possible.
- Lack of technical viability of the battery.
- Risk of curtailing innovation around the battery.
- Need to address safety concerns related to the battery as it would be unclear who will be responsible for battery ownership if it is swapped from one energy provider to another.
For instance, if we look at the current scenario, a vehicle from one OEM is serviced using only the original parts supplied by that brand. We won’t be using Maruti spares in a Mahindra vehicle or Hyundai spares in a Tata vehicle just because those happen to be the ones available immediately. A similar logical approach has to be adopted for EV batteries.
Safety and reliability – One of the reasons why the government is pushing for standardization is to ensure that batteries are high-quality, safe, and reliable, and this involves battery engineering too. In the same way, swapping is also a process to evaluate battery health. Charging at swapping stations is done in a controlled environment to boost battery life. This means that the place where the batteries are charged is temperature controlled. The charging infrastructure is standardized and the energy flow is regulated. Overall, a controlled environment will help in improving battery life and output. How will this be ensured under the proposed framework, is a technicality that needs to be worked out.
Conclusion
Battery swapping policy is much needed to streamline and regulate the ecosystem and drive EV adoption in India. However, there must be further consultations, and mutual solutions need to be discovered to the unanswered challenge areas. This would ensure that the policy meets all its objectives, thereby propelling India toward a greener future!
Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.