The Ministry of Heavy Industries (MHI) has taken a significant step towards bolstering domestic manufacturing of Advanced Chemistry Cells (ACC). In an effort to encourage indigenous production and reduce dependence on imports, the MHI has declared the re-bidding of performance-linked incentives (PLI) for the manufacturing of 20 GWh of ACC under the “National Programme on Advanced Chemistry Cell Battery Storage.”
The auctioning process will allow prospective applicants to submit their bids for establishing domestic manufacturing facilities dedicated to advanced chemistry cell production. Successful bids will qualify for incentives under the ACC PLI scheme, supporting the vision of Aatmanirbhar Bharat (self-reliant India) laid out by Prime Minister Narendra Modi. By fostering homegrown ACC manufacturing, the initiative aims to create more job opportunities for Indian citizens.
To ensure inclusivity and gather valuable insights from industry stakeholders, the MHI will facilitate stakeholder consultation on Monday, July 24th, 2023. This consultation, chaired by the Secretary of the Ministry of Heavy Industries, will seek suggestions and inputs before commencing the re-bidding process for the remaining 20 GWh ACC manufacturing capacity. The Ministry is committed to expediting the finalization of bidding documents and proceeding with the rebidding process at the earliest.
Advanced Chemistry Cells (ACCs) represent the next generation of advanced energy storage technologies, capable of storing electric energy as either electrochemical or chemical energy. They can efficiently convert stored energy back into electricity whenever required. These cells find widespread applications in electric vehicles, grid stability maintenance, solar rooftop systems, consumer electronics, and more.
Considering India’s ambitious commitment to renewable energy and the goal of achieving net-zero emissions by 2070, energy storage solutions like ACCs are set to play a vital role in shaping the nation’s energy ecosystem.
In May 2021, the Cabinet, led by Prime Minister Narendra Modi, granted approval for the Production Linked Incentive (PLI) Scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage.’ The scheme aimed to achieve a manufacturing capacity of 50 GWh of ACC and 5 GWh of niche ACC, with a total outlay of ₹18,100 Crore.
During the first round of ACC PLI bidding, which concluded in March 2022, the government allocated a total capacity of 30 GWh to three companies. Subsequently, program agreements were signed with the selected companies in July 2022, marking a significant step forward in India’s journey toward self-sufficiency in advanced energy storage technologies.
