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[pib] Cabinet approves PLI scheme for Advanced Chemistry Cell (ACC) Battery Storage

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Advance Chemical Cell batter

Mains level : Paper 3- PLI scheme for ACC battery

About the scheme

  • The Cabinet, chaired by Prime Minister 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’.
  • Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity and ensure 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 Rs.225 crore /GWh within 2 Years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of “Hub & Spoke” structure.
  • The scheme will help in achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC and 5 GWh of “Niche” ACC with an outlay of Rs.18,100 crore.

About 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.

Benefits of the scheme

  • Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
  • Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
  • Facilitate demand creation for battery storage in India.
  • Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
  • Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000 crore on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the Programme is expected to accelerate EV adoption.
  • 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 program will be a key contributing factor to reduce India’s Green House Gas (GHG) emissions which will be in line with India’s commitment to combat climate change.
  • Import substitution of around Rs.20,000 crore every year.
  • The impetus to Research & Development to achieve higher specific energy density and cycles in ACC.
  • Promote newer and niche cell technologies.
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