On May 12, 2021, the Union Cabinet has approved the proposal for implementation of the INR 18,100 Crore – Production Linked Incentive (PLI) Scheme, “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”. The Scheme is aimed for achieving manufacturing capacity of 50 GWh of ACC and 5 GWh of “Niche” ACC.
The Press Release dated May 12, 2021 has stated that ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
At present, the demand of the ACCs is being met through imports in India. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage seeks to reduce import dependence. It shall further strengthen the Atmanirbhar Bharat initiative. The ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. Thereafter, the manufacturing facility would have to be commissioned within a period of two years. The incentive shall be disbursed thereafter over a period of five years.
The Press Release has further added that each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity and ensure a minimum 60% domestic value addition at the Project level within five years. Furthermore, the beneficiary firms will have to achieve a domestic value addition of atleast 25% and incur the mandatory investment Rs 225 crore /GWh within 2 Years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of “Hub & Spoke” structure.
Following benefits are expected by the Scheme as per the press release:
- Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
- Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
- Facilitate demand creation for battery storage in India.
- Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
- Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000 crore on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the Programme is expected to accelerate EV adoption.
- The manufacturing of ACCs will facilitate demand for EVs, which are proven to be significantly less polluting. As India pursues an ambitious renewable energy agenda, the ACC program will be a key contributing factor to reduce India’s Green House Gas (GHG) emissions which will be in line with India’s commitment to combat climate change.
- Import substitution of around Rs.20,000 crore every year.
- Impetus to Research & Development to achieve higher specific energy density and cycles in ACC.
- Promote newer and niche cell technologies.
Tanvi Singh, Editorial Assistant has put this story together.