India has made strides in increasing electricity access to towns and villages. However, the country still grapples with shortages during peak demand periods due to the surging energy consumption. India relies heavily on coal-based power generation, primarily because storage technologies remain costly and have not yet gained widespread adoption.
Tesla has formulated plans to manufacture and sell battery storage systems within India. The company has submitted a proposal to government officials, requesting incentives for the establishment of a factory. This initiative is part of Elon Musk’s ongoing efforts to establish a presence in the country.
While Tesla has been engaged in discussions regarding the potential construction of a new electric vehicle (EV) factory in India to produce an affordable car priced at around $24,000, with Prime Minister Narendra Modi overseeing these talks, the company’s foray into renewables has not been widely reported.
During recent meetings in New Delhi, Tesla presented a proposal to bolster India’s battery storage capabilities through the implementation of its “Powerwall” system. This technology can store energy from solar panels or the grid for later use, especially during nighttime or power outages. The sources disclosing this information have chosen to remain anonymous due to the confidential nature of the matter.
While Tesla initially pursued various incentives to establish a battery storage factory, Indian officials have indicated that these incentives may not be available, according to one of the sources. However, the government is considering alternative support by potentially facilitating a fair business model for the company through subsidies aimed at consumers who purchase such products.
Although both Tesla and the Indian government expressed interest in the proposal, it is not guaranteed that the plan will come to fruition, as stated by the first source.
The Powerwall proposal represents a facet of the U.S. company’s strategy to establish a more comprehensive presence in India, extending beyond electric vehicles (EVs), as noted by the second source. Tesla is actively seeking residential and industrial customers for its battery storage systems and is committed to making the Powerwall business a reality in India. Achieving this goal may necessitate significant policy-level adjustments.
Tesla, the chief spokesperson for the Indian government, and the commerce ministry did not provide comments in response to requests for information.
India has indeed made progress in augmenting electricity access to towns and villages; however, the country continues to grapple with peak shortages arising from surging demand. India’s heavy reliance on coal-based power generation is primarily due to the cost and limited proliferation of storage technologies.
In the previous year, India confronted its most severe power crisis in over six years, attributed to challenges in coal transportation. Delays in expanding coal and hydropower capacity have heightened the risk of nighttime power shortages, particularly when solar energy is unavailable. India aims to significantly raise its non-fossil fuel power capacity to 500 GW by 2030, a substantial increase from its current capacity of 186 GW.
Powerwall
Tesla’s Powerwall is an elegantly designed unit, standing at approximately one meter in height, intended for installation in garages or on the exterior of houses.
During a visit to Tesla’s California campus in 2015, accompanied by Elon Musk, Prime Minister Modi had the opportunity to review the Powerwall product. Following the visit, Modi expressed his interest in exploring how battery technology could benefit farmers.
While Powerwall primarily targets residential and light commercial applications, Tesla may contemplate the development of larger-scale solutions for the industrial sector if the India plan progresses, as indicated by the second source. However, specific details regarding these potential developments were not provided.
