Will BaaS (Battery as a Service) help solve the EV battery charging conundrum?
In recent times, electric vehicles have attracted widespread interest because of their ability to reduce energy consumption and emissions. Research has shown that electric cars are better for the environment as they emit fewer greenhouse gases and air pollutants than petrol or diesel cars. The Indian Government also believes in the future of mobility being electric and has pledged serious commitment toward making India an EV-driven country. As the Government and manufacturers continue to make new commitments for electric vehicle sales, the cost of manufacturing electric vehicles continues to fall, making them a strong competition for internal combustion vehicles.
The Electric Vehicle (EV) landscape in India has evolved rapidly over the last few years. This has been facilitated by several schemes and initiatives announced by the Government of India, that are aimed at a faster adoption of EVs and their manufacturing in India.
The adoption of EVs in the transportation sector is growing in order to reduce air pollution in congested urban areas and minimizing the downtime of the vehicles while they are being charged is critical to running efficient operations. Even with a fast charger, it would take a battery at least an hour to reach an 80 percent state of charge, which translates into the vehicle being off the road for 60 minutes every time it needs to be refueled. Adding to the conundrum is the fact that when batteries are charged rapidly, they tend to deteriorate faster, and thus would need to be replaced more frequently. As of today, the batteries alone can contribute up to 40% of an EV’s Bill of Materials (BOM) cost, which adds up to a massive recurring expenditure.
Some of the other challenges that have deterred EVs from taking off on a large scale include - high up-front cost, long charging time, limited range, and charging infrastructure. These issues, and several more, can be circumvented through the implementation of battery swapping systems. With a Swappable Solution, consumers reduce their upfront cost, reduce their refueling time from hours to just 5 minutes and it provides them unlimited range. Consumers also do not need to worry about expensive battery replacements every few years.
The government organization NITI Aayog recently unveiled a draft of the battery swapping policy which focuses on the Battery-as-a-Service (BaaS) model. This model allows users to buy EVs without batteries and then sign up for battery subscription services.
This battery swapping model is anticipated to drive faster adoption of eco-friendly and sustainable mobility options amongst Indian citizens, and pave the way for a cleaner future for everyone.