Ashok Thakur, Editor-in-Chief, ETN
It's was springboard year, last year; we need to take a leap of faith and go for it, I had written.
This year, it looks like keeping the faith worked all for the makers – auto, materials, battery, and even the policy makers.
The energy transition is picking up momentum with every year. In fact, it has gained a lot of awareness and support in this past year.
The most important being the support from governments the world over, who have realized that adequate support, not only in terms of favorable policy but also financial inputs, can aid in quickening the pace of the green transition.
Incentives in the form of subsidies and tax credits are already being offered to manufacturers as well as the consumers in many nations that have favorable zero-emission plans. Now, governments are showing keen interest in also investing in their country's energy transition.
The US Inflation Reduction Act, from the Biden administration, aims to provide more than $369 billion in funding for Energy Security and Climate Change programs over the next ten year. This announcement has come as a definite boost for the leaders and visionaries of clean technology, who will now find backing for their strategies.
Like the Indian government's ACC PLI scheme to spur domestic production of batteries, the US DOE also issued notices of intent early this year to fund production of the advanced batteries – right from materials, factories, cells and packs to recycling facilities.
The European energy market, which is bearing the brunt of the geopolitical conditions created by the Ukraine-Russia conflict, is in fact formulating policies – like the REPowerEU plan – to secure its energy situation. The plan is backed by financial and legal measures to build the new energy infrastructure and system throughout Europe.
"Focus on e-mobility is prime as it is has grown in awareness as well as popularity around the world, which means faster adoption of EVs."
Ashok Thakur, Editor-in-Chief, ETN
Many other nations have announced, or are in the process of formulating, similar programs that will make each nation self-reliant and self-sufficient in generating and sustaining energy.
The sector to benefit from it most will be the EV segment. Focus on e-mobility is prime as it is has grown in awareness as well as popularity around the world, which means faster adoption of EVs. That could be most important step toward reduction in harmful emissions.
Scaled-up battery production is the need of the hour to meet the growing demand. Construction of over 300 battery giga factories globally is in the offing; that is a sizeable number that can go a long way in pushing EV adoption in the next 10 years.
(Read more in our year review cover feature.)
And when there is mention of sustainable electric power, I just have to mention green hydrogen. Nations around the world believe it could be a transformative fuel given time, and are working towards an alternative hydrogen economy.
I feel, there is still time for the H2 market to mature, but early investment and R&D in this space will see encouraging progress in the years to come. What definitely is encouraging is the fact that mention of H2 possibilities is finding its way into many a State policies.
The juggernaut is moving! Many visions and missions are at play, billions in investment are at stake, the purpose is daunting… but the good thing is the path to achievement is one and clear. There's no doubt we will make remarkable progress.
We have moved from hope to spring-boarding to keeping the faith… what next now? Leapfrogging? Heck, why not! Wishing all our readers success in leaps and bounds in the coming years!
Decade of the E-Revolution