NITI Aayog’s draft policy on battery swapping explained

Government think tank NITI Aayog has just unveiled a draft policy, which will likely serve as the basis for the battery swapping policy that the government announced it will be rolling out shortly after the recent budget session.

The draft policy has highlighted the key areas which the centre’s approach towards facilitating a strong EV battery swapping infrastructure will be based around. The policy is expected to provide a much needed boost to the country’s burgeoning EV charging infrastructure and is designed to primarily help the e2W and e3W sector, where swapping of batteries is not only feasible but essential (especially in the e-commerce and commercial sector) for hassle-free EV usage.

Although precise details of the interoperability standards are yet to be formulated, the draft policy has highlighted the key areas and the minimum technical and operational requirements that would need to be put in place to ensure safe and widespread use of battery technology.

Below are the key areas of focus:

Customer and Battery Provider Incentives

For those wondering how the existing EV subsidies doled out on the basis of battery size would be applicable to swappable batteries, the policy states the same existing and new schemes for EV purchase can be made available to EVs with swappable batteries, based on the same kWh rating of the battery. Subsidy will also be allocated to battery providers “provided the battery swapping ecosystem that they represent satisfies the technical and operational requirements”. The draft also states that subsidies will be linked to the UIN (Unique Identification Number) of EVs and batteries to ensure that there is no double-dipping.

The policy also specifies that, in order to ensure that battery providers continue to provide battery swapping services after having availed of government subsidies, a contract will be signed between EV users and battery providers.

Technical and Operational requirements

Arguably the most vital aspect of the policy is a detailed set of technical and operational standards that will ensure that the batteries put in place will be safe and adhere to certain standards of quality. One of the many points of interest in the draft policy is a guarantee of “safeguarding the innovation potential for the EV battery ecosystem”.

The policy puts the onus of providing a sound technical platform on the manufacturers who will have to ensure that several features come as standard, in order to be able to operate freely and avail subsidies. To begin with all batteries must use “Advanced Chemistry Cells” and must be BMS-enabled. It should be stated that while nodal authorities will be free to check the compatibility of the BMS with other systems, as well as its safety requirements, the BMS itself must be self-certified.

In addition to this, manufacturers must ensure that all batteries are equipped with IoT-based battery monitoring systems and remote immobilisation capabilities. While the draft is sketchy on the details, it does, as expected, highlight the necessity of adhering to standard specifications concerning battery pack dimensions, charging connectors etc. However, in order to ensure that the change isn’t a sudden one, the policy will ensure that battery manufacturers are notified in advance about the standard they all must switch to, to promote interoperability.

As for infrastructural requirements, the draft policy states that the Electric Vehicle Supply Equipment (EVSE) used at the swapping stations must be tested and approved by the National Accreditation Board for Testing and Calibration Laboratories (NABL) or an agency appointed by the central nodal agency (that agency being the BEE).

Battery users are also expected to have the freedom to switch operators in the future. They should also be allowed the flexibility of removing said swappable battery and charging it at home and appropriate measures must be taken by the battery provider to ensure that safety of the consumer and performance of the battery isn’t affected by this.

As is the norm at present, the batteries will continue to be tested and certified as per AIS 156 (2020) and AIS 038 Rev 2 (2020). However, given that these testing norms are evolving along with battery technology, the policy is open to incorporating additional testing procedures as and when they are formulated.

The draft policy also states that government approved battery service providers are expected to publish “relevant technical and operational characteristics that would allow other players to develop compatible solutions” in order to prevent certain operators from having a monopoly over the ecosystem.

The 19-page document then goes on to elaborate on policies previously touched upon by the government. This includes the provision of land at “promotional” or subsidised rates. Much like the case with the Union Budget, there will be no relaxing the GST slabs for batteries (18%) and EV supply equipment (5%)

The Roll Out Plan

After Phase 1 tackles all major metropolitan cities in the first and second year, a second phase will be initiated in Years 2-3 where all major cities, state capitals, UT headquarters and cities with population exceeding 5 lakh (per census 2011) will be covered. Once again, the priority will be e2W and e3W.

The BEE will be responsible for the implementation of battery swapping networks across the country but it’s up to individual state and UT governments to ensure the governance of the battery swapping ecosystem. In addition to this, there will be state nodal agencies which will assist the above mentioned authorities. State Electricity Regulatory Commissions are to help provide concessional power tariffs and other such incentives for swapping services.

In order to ensure that all service providers have a level playing field, the policy states that certified “battery agnostic” swapping stations must be used so multiple battery packs can be accommodated. How this ties into individual brand subscription plans remains unclear.