PLI Scheme for Advanced Chemistry Cell Battery Storage – UPSC Prelims

Nodal Ministry: Ministry of Heavy Industries & Public Enterprises
Aim: The programme aims to set up facilities capable of manufacturing a cumulative 50GWh of Advanced Chemistry Cell (ACC) batteries.
Key Features of the Scheme:
  • Government will select the ACC battery storage manufacturers through a transparent competitive bidding process.
  • Selected ACC manufacturer will have to set up the ACC facility within a period of two years.
  • Incentive will then be disbursed to the manufacturer over a period of five years. The incentive amount will rise with the following,
    • Increased specific energy density and cycles,
    • Increased local value addition.
  • ACC firms will also have to achieve a domestic value addition of at least 25%. They should also incur the mandatory investment of Rs 225 crore /GWh within 2 years.
  • Each selected ACC battery Storage manufacturer would have to commit to set up an ACC manufacturing facility of minimum 5GWh capacity. Further, they should also ensure a minimum 60% domestic value addition at the project level within five years.
Benefits of the Scheme:
  • Currentlyall the demand for the ACCs is satisfied through imports in India. Hence, the programme on ACC will decrease import dependence.
  • The manufacturing of ACCs will also increase the demand for Electric Vehicles (EV).
  • India can increase net savings of around Rs 2 lakh crore on account of oil import bill due to Electric Vehicles (EV) adoption.
  • Facilitate demand creation for battery storage in India.
  • The impetus in R&D can achieve higher specific energy density and cycles in ACC.
  • Promote newer and niche cell technologies.
What are Advanced Chemistry Cell(ACC) batteries?
  • ACCs are the new generation of advanced storage technologies. They can store electric energy either as electrochemical or as chemical energy. The cells then can convert it back to electric energy as and when required.
  • Sectors: Consumer electronics, electric vehicles, advanced electricity grids and solar rooftops are major battery consuming sectors.
Scroll to Top