In a significant push toward electrification, the Government of India has approved the proposal of the Department of Heavy Industry for implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' for achieving manufacturing capacity of Fifty (50) GigaWatt Hour (GWh) of ACC and 5 GWh of 'Niche' ACC with an outlay of INR 18,100 crore.
The Cabinet, chaired by Prime Minister Narendra Modi, has given approval to implement the Production LinkedIn (PLI) Scheme' National Programme on Advanced Chemistry Cell (ACC) Battery Storage', a proposal given by the Department of Heavy Industry.
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 power as and when required.
Consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc., which are major battery consuming sectors, are expected to achieve robust growth in the coming years.
In future, the dominant battery technologies will control some of the world's largest growth sectors. While several companies have already started investing in battery packs, though these facilities' capacities are too small compared to global averages, there is still a negligible investment in manufacturing and value addition of ACCs in India.
All the demand for the ACCs is currently being met through imports in India.
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 programme will be a key contributing factor to reduce India's Greenhouse Gas (GHG) emissions, which will align with the country's commitment to combat climate change.
The National Programme on ACC Battery Storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative. ACC battery storage manufacturers will be selected through a transparent and competitive bidding process. Therefore, the manufacturing facility would have to be commissioned within a period of two years.
The incentive will be disbursed after that over a period of five years.
The incentive amount will increase with increased specific energy density & cycles and increased local value addition. Each selected ACC battery storage manufacturer would have to commit to setting up an ACC manufacturing facility of a minimum of five GWh capacity and ensuring a minimum 60% domestic value addition at the project level within five years.
Furthermore, the beneficiary firms have to achieve a domestic value addition of at least 25% and incur the mandatory investment INR 225 crore /GWh within two years (at the Mother Unit Level) and raise it to 60% domestic value addition within five Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of 'Hub & Spoke' structure.