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National Programme on Advanced Chemistry Cell Battery Storage

Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

National Programme on Advanced Chemistry Cell Battery Storage:


Context:

The Cabinet has approved the proposal of 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.

About the scheme:

  • It is a ₹18,100 crore production-linked incentive (PLI) scheme for building Tesla-style giga factories to manufacture batteries.
  • The plan is to set up 50 gigawatt hour (GWh) manufacturing capacity for advanced chemistry cell batteries by attracting investments totaling ₹45,000 crore.
  • As part of the scheme, each selected ACC battery storage manufacturer would have to commit to set up an ACC manufacturing facility of minimum 5GWh capacity and ensure a minimum 60% domestic value addition at the project level within five years.

What are Advanced Chemistry Cells (ACC)?

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.

Significance of the scheme:

All the demand of the ACCs is currently being met through imports in India.

  • The National Programme on Advanced Chemistry Cell (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 competitive bidding process.

InstaLinks:

Prelims Link:

  1. What are ACCs?
  2. Applications.
  3. About the PLI schemes.
  4. Overview of the National Programme on Advanced Chemistry Cell (ACC) Battery Storage.

Sources: PIB.

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