NITI Aayog came out with a draft battery swapping policy for electric vehicles and suggest incentives as well as a rigorous testing protocol for swappable batteries.
The draft policy also comes at a time when there are rising concerns over safety issues around electric vehicles in the wake of multiple instances of such vehicles catching fire.
NITI Aayog in its draft policy further said all major cities such as state capitals, UT headquarters and cities with population above five lakh will be cover under the second phase, given the importance of the two-wheeler and three-wheeler vehicle segments in growing cities.
The policy seeks a level playing field across business models involving the sale of EVs with fixed or swappable batteries.
The draft policy also proposes that demand side incentives offer under existing or new schemes for EV purchase can be made available to EVs with swappable batteries eligible under this policy.
NITI Aayog suggest :
“The size of the incentive could be determined based on the kWh rating of the battery and compatible EV,”.
As per the draft policy, an appropriate multiplier may be apply to the subsidy allocate to battery providers to account for the float battery requirements for battery swapping stations.
NITI Aayog is also propose that a seamless mechanism for the disbursement of subsidies shall be work out by the ministry or department concern, the draft policy state.
To ensure a high level of protection at the electrical interface, NITI Aayog propose that a robust/rigorous testing protocol shall be adopt to avoid any dielectric breakdown, arc phenomenon, or any unwant temperature rise at the electrical interface.
The draft policy note that Electric Vehicle Supply Equipment (EVSE) use at the swapping station must be test and approve by the National Accreditation Board for Testing and Calibration Laboratories (NABL) or an agency appoint by the central nodal agency for battery swapping.
NITI Aayog Said :
“For safety during operation of the charging infrastructure, the operator must follow the guidelines and protocols of DISCOMS/CEA (Central Electricity Authority),”.
Regarding issues related to grievance redressal and compensation, NITI Aayog propose that in case complaints are register by EV owners, the battery provider may be ask by the appropriate authority to return the demand incentive given to it under the applicable scheme.
The battery management system (BMS) of the battery must be self-certified and open for testing to check its compatibility with various systems, and capability to meet safety requirements.
The draft point out that as per the current Goods and Services Tax (GST) regime, the tax rates on lithium-ion batteries and EVSE are 18 percent and 5 percent, respectively.
NITI Aayog Suggest :
“The GST Council, the decision making body on GST provisions, may consider reducing the differential across the two tax rates,”.
According to the draft policy document, to provide improve information on battery health and performance, and to enable more flexibility to consumers through peer-to-peer roaming networks, data sharing agreements among major battery providers will be encourage.
To implement unique traceability across the battery lifecycle, the draft policy also proposes to assign a Unique Identification Number(UIN) at the manufacturing stage for tracking and monitoring EV batteries.
NITI Aayog said any individual or entity is free to set up a battery swapping station at any location, provide that the specified technical, safety and performance standards are adher to.
According to the policy document, a single-window portal should be set up to facilitate the submission of all require documents by battery swapping providers, issue trade licences for battery swapping businesses.
Considering the constraint of space in urban areas for setting up charging stations at scale, Finance Minister in her Budget speech 2022-2023 had announce that the Centre would be introducing a battery swapping policy and interoperability standards in order to improve efficiency in the EV ecosystem.
According to an official statement, in this regard, NITI Aayog held an inter-ministerial discussion to formulate a robust and comprehensive battery swapping policy framework in February 2022.
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, think tanks and other experts.
Battery swapping is an alternative which involves exchanging discharge batteries for charge ones.
Battery swapping de-links the vehicle and fuel and then reduces the upfront cost of the vehicles.
The statement note that battery swapping is popularly use for smaller vehicles such as 2 and 3 wheelers which have smaller batteries that are easier to swap compare to other automotive segments wherein the same can be implement mechanically.
Battery swapping provides level playing field to innovative and sustainable business models such as ‘Battery As a Service’, as per the statement.
The draft is up for consultation, and NITI Aayog has invite comments on it until 5th June 2022.
