Production of EV batteries will increase in India, government invites bids again under PLI
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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 re-inviting bids under the Production Linked Incentive (PLI) scheme for manufacturing ‘Advanced Chemistry Cell’. Under this Rs 18,100-crore program, the government aims to promote state-of-the-art chemical battery (Advanced Chemistry Cell-ACC) manufacturing of the remaining 20 GWh capacity. The Government of India has set a target of zero carbon emissions by the year 2070 along with reducing environmental pollution and dependence on fossil fuels.
Government will hold discussions with industry representatives
The Ministry of Heavy Industry will facilitate consultations 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 capacity. According to an official statement issued by the ministry, the ministry is committed to finalize the bid documents and take the process forward at the earliest. With this auction process, prospective applicants can submit their bids for setting up a plant for manufacturing ‘Advanced Chemistry Cell’. This will help them to get eligibility for incentives under ACC PLI Scheme.
What is Advanced Chemistry Cell
Let us tell that chemical battery (Advanced Chemistry Cell-ACC) is the advanced storage technology of new generation. It can store electrical energy in the form of electrochemical or chemical energy and convert it back to electrical energy when needed. It can be mainly used in electric vehicles, maintaining grid stability, rooftop solar projects, consumer electronics etc.
India’s target of zero carbon emissions by 2070
India has set a target of net zero carbon emissions by 2070. Along with this, the role of energy storage is very important with the commitment towards renewable energy. The government had approved the PLI scheme ‘National Program on ACC Battery Storage’ to achieve a manufacturing capacity of 50 gigawatt hours (GWh) of ACC to enhance the manufacturing capacity with a budgetary outlay of Rs 18,100 crore. The thrust of the government under this initiative is to ensure that the cost of battery manufacturing in the country is globally competitive while achieving domestic value addition.
Demand will reach 2600 GW by 2030
According to a report, India registered a 30 percent increase in annual battery demand between 2010 and 2018, reaching a total of 180 GW in 2018. Simultaneously, it is expected to maintain its growth rate at an estimated 25 per cent, resulting in demand reaching 2600 GW in 2030. Further, the cost reduction is expected to increase the demand to 3562 GW. The important reasons for this high growth rate of the electric battery industry include 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, with smart metering used in electric vehicles (vehicle-to-grid) and home energy storage, and which are connected to smart grids for demand response. The biggest thing is that these batteries can be used again in a new way. In addition, these batteries also reduce energy storage cost and reduce the effects of pollution and carbon emissions due to longer life. Grid scale energy storage envisages the large scale use of batteries to collect and store energy from the grid or power plant and then later discharge that energy to provide electricity or other grid services when needed.
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