Note4Students

From UPSC perspective, the following things are important :

Prelims level: EV Battery Swapping Policy

Mains level: Electric mobility

NITI Aayog is holding a consultation on the upcoming electric vehicle (EV) battery swapping policy.

Battery-as-a-service (BaaS) is seen as a viable charging alternative.
Manufacturers can sell EVs in two forms: Vehicles with fixed or removable batteries and vehicles with batteries on lease.
If you buy an electric scooter with battery leasing, you do not pay for the cost of the battery—that makes the initial acquisition almost 40% cheaper.
Users can swap drained batteries for a fully charged one at a swap station. The depleted batteries are then charged on or off-site.
The advantages of swapping include low downtimes for commercial fleets, reduced space requirements, and lower upfront costs.
It is also a viable solution for those who don’t have parking spots at home.

That’s when a battery is compatible across vehicles and chargers, so you can seamlessly swap a battery at any swap station. This can help achieve scale.
However, manufacturer and service providers say there are safety concerns around the ‘one-size-fits-all’ model and caution too much standardization can kill innovation.

There are economic and operational constraints.
Energy service providers offering swapping solutions have to charge 18% goods and services tax (GST) for swapping, compared to 5% GST on the purchase of an EV.
Additionally, the government’s FAME-II incentives are not offered to vehicles sold with BaaS or swap station operators.
While these are economic disadvantages compared to direct charging solutions, the lack of a dense and interoperable battery swap infrastructure has also hindered the roll-out.
Manufacturers, on the other hand, are keen to create proprietary battery and charging systems.

There is a need for standardization of safety specifications as well as the battery.
Swapping in the various permutations and combinations of batteries at a station where they have not been tested for compatibility could lead to safety hazards.
Also, mandating only one type of battery to be eligible for concessions would be disadvantageous to many players.

Bengaluru-based startup Bounce is the first e-two-wheeler maker to sell its scooters with BaaS, and claims to have achieved a million battery swaps.
Others like Ola Electric and Ather have stuck to direct charging solutions, while Hero Electric offers both fixed and removable batteries.
Many makers are working with energy service providers to offer battery swapping.
The global precedent is a mixed bag: Ample, which offers swaps in the US, has found success with commercial fleets, while most personal users charge at home.

High Cost of EVs: An EV, by industry standards, is 1.5-2x costlier than IC Engine counterpart and at least half the cost is from the battery pack.
Cost reduction: Many manufacturers are offering batteries separately from a vehicle, reducing the cost. In that case, a fleet owner can buy vehicles without battery and utilize battery swapping.
Range Anxiety: Another major reason stopping people from buying EVs is range anxiety, or in simple terms, the fear of battery getting empty without finding a charging station.
Inadequate charging infrastructure: Unlike petrol pumps, EV charging stations are rare to spot and that further increases the range anxiety exponentially, especially while going on a road trip.
Hazard management: In case of a Swapping Station, one can simply locate a station, go and replace the empty battery with a new one.

JOIN THE COMMUNITY