New Delhi: To increase the production of batteries (advanced chemistry cells) used in electric vehicles (EV) in India, the Modi government at the Center has invited bids under the Production Incentive Scheme (PLI Scheme). According to a report in news agency Bhasha, the government on Thursday announced to re-invite bids under the Production Linked Incentive (PLI) scheme for building ‘advanced chemistry cells’. Under this Rs 18,100 crore programme, the government aims to promote the production of advanced chemical batteries (Advanced Chemistry Cells-ACC) of remaining 20 GWh capacity. The Indian government has set a target of zero carbon emissions by 2070 and reducing environmental pollution and dependence on fossil fuels.
Government will discuss with industry representatives
The Ministry of Heavy Industries will facilitate a consultation among stakeholders to seek their views and suggestions with industry representatives on July 24, 2023 before resuming the bidding process for the remaining 20 GW of capacity. According to an official statement issued by the ministry, the ministry is committed to finalize the tender documents and expedite the process. Through this auction process, prospective applicants can submit their bids for setting up a plant to manufacture ‘advanced chemistry cells’. This will help them qualify for incentives under the ACC PLI scheme.
What is Advanced Chemistry Cell?
Let us say that chemical battery (Advanced Chemistry Cell-ACC) is a new generation advanced storage technology. It can store electrical energy in the form of electrochemical or chemical energy and convert it into electrical energy when needed. It can be mainly used in electric vehicles, maintaining grid stability, rooftop solar projects, consumer electronics, etc.
India aims to achieve zero carbon emissions by 2070
India has set a target of net zero carbon emissions by 2070. In addition, the role of energy storage is crucial with the commitment to renewable energy. The government approved the PLI scheme ‘National Program on ACC Battery Storage’ to acquire 50 gigawatt hours (GWh) generation capacity of ACC to increase generation capacity with a budget outlay of Rs 18,100 crore. The government’s emphasis under this initiative is to ensure that battery manufacturing costs in the country are globally competitive while achieving domestic value addition.
Demand will reach 2600 GW by 2030
According to a report, India saw a 30 percent increase in annual battery demand between 2010 and 2018, reaching a total of 180 GW in 2018. At the same time, its growth rate is expected to remain at approximately 25 percent, leading to demand reaching 2600 GW in 2030. Further, the cost reduction is expected to increase demand to 3562 GW. Important reasons for this high growth rate of the electric battery industry include the electrification of transportation and large-scale installation in the power grid.
Where are electric batteries used?
Electric batteries are active participants in smart power supply grids, including smart metering used in electric vehicles (vehicle-to-grid) and home energy storage, and which are connected to smart grids for demand response. The most important thing is that these batteries can be used again. In addition, these batteries also reduce energy storage costs and reduce the impact of pollution and carbon emissions due to longer life. Grid-scale energy storage envisions the large-scale use of batteries to collect and store energy from the grid or power plants and then discharge that energy to provide electricity or other grid services when needed.
