India's Bold Push for Energy Storage: Budget 2023 Sparks Industry Optimism

Industry leaders, including the IESA, commend India's Union Budget for its energy storage focus. Key proposals include Rs 40,000 crore for electronics component duties and the ECMS enhancement. However, concerns linger over missing incentives for lithium, nickel refining, and recycling industries. The ambitious goal of 500 GW renewable energy by 2030 necessitates strong battery storage support.

Industry leaders in India, represented by the Energy Storage Alliance (IESA), have enthusiastically endorsed the Union Budget 2023 for its significant focus on boosting energy storage and battery manufacturing capabilities. Notable allocations include a Rs 40,000 crore investment towards electronics component duty exemptions, part of a broader strategy to strengthen India's renewable energy infrastructure.

While the Budget is praised for initiatives like Basic Customs Duty (BCD) exemptions for battery energy storage systems (BESS) and the proposal of rare earth corridors, concerns persist regarding omissions of allocations for lithium and nickel refining. The recycling industry also remains unaddressed, which, according to IESA, is crucial for meeting India's ambitious 2030 renewable energy targets.

Industry experts urge the government to extend BCD exemptions to all aspects of the value chain and recommend detailed guidelines for chemical parks to boost battery chemical manufacturing. Enhanced customs duty rationalization and waste lithium-ion battery duties are seen as steps towards achieving strategic energy storage objectives.

(With inputs from agencies.)