The Ministry of Heavy Industries has called for global bids to set up the Advanced Chemistry Cell (ACC) battery manufacturing units under the Production-Linked Incentive (PLI) Scheme of the Indian government. This is the final stage of the ₹18,100-crore PLI project that seeks to establish a strong domestic battery manufacturing ecosystem and minimize import dependence on batteries. The batteries produced will be essential for energy storage at the grid level, which helps store electricity generated from renewable energy sources such as solar and wind power.
What has the Government Revealed?
The opening of the bidding for setting up 10 GWh of ACC battery manufacturing capacity in India has been announced by the Ministry of Heavy Industries.
Important Points
- Both global players and domestic producers are eligible for bidding.
- The total ACC battery manufacturing capacity available is 10 GWh.
- This step falls within the framework of the Production Linked Incentive scheme for ACC batteries.
- The government wants to make environment-friendly energy and battery production more efficient through this scheme.
Thus, this announcement marks the completion of the allocation process under the battery manufacturing project.
What is the Production Linked Incentive Scheme for ACC batteries?
In 2021, the Union Cabinet approved the Production Linked Incentive Scheme for ACC batteries.
- Scheme Name: Production Linked Incentive for ACC Batteries
- Year of Launch: 2021
- Financial Allocation Amount: ₹18100 crore
- Total Intended Capacity: 50 GWh
- Allocated Capacity: 40 GWh
- Currently Bidding Capacity: 10 GWh
The purpose of this scheme is to encourage companies to start working on battery manufacturing facilities in India.
What are ACC (Advanced Chemistry Cell) Batteries?
ACC batteries are newly invented rechargeable batteries that provide a number of advantages such as better efficiency, longer lifespan, and greater energy storage capabilities.
ACC batteries are commonly used in,
- Electric Vehicles
- Renewable energy storage systems
- Power generation sites
- Consumer electronics
- Industrial energy storage
ACC batteries differ from regular batteries in several important ways,
- Higher energy storage capacity
- Shorter charging times
- Longer battery life
- Safer and more efficient batteries
The Significance of ACC Batteries
Facilitates Renewable Energy Usage
Solar and wind energy are intermittent power sources. ACC batteries store surplus electricity produced during peak production hours for later use.
Enhances Grid Stability
Grid batteries help stabilize power supply by allowing for balance between production and consumption of electricity.
Encourages Clean Energy
The use of batteries allows for more renewable energy use in India’s electricity grid and enables the country’s transition to clean energy.
Facilitates E-Mobility
Battery manufacturing is important in bringing down the prices of electric vehicles and making EVs more acceptable.
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