National Programme on Advanced Chemistry Cell (ACC) Energy Storage

 🔆National Programme on Advanced Chemistry Cell (ACC) Energy Storage

✅ Why in News: NITI Aayog presented a report on the current status and future trends in the ACC battery sector.

✅The report emphasises the potential role of the Production Linked Incentive (PLI) scheme on ACC energy storage in creating domestic economic value.

✅The policies and incentives recommended in this report could pave the way for top-level battery manufacturers to invest in India.

▪️National Programme on Advanced Chemistry Cell (ACC) Energy Storage

✅Nodal Ministry: the Ministry of Heavy Industries & Public Enterprises, Government of India

✅Budget allocation: Rs. 18,100 crores 

✅Target: Manufacturing capacity of 50 GigaWattHour (GWh) of ACC and 5 GWh of niche ACC.

✅The cash subsidy will be offered on output, i.e. the volume of cells manufactured and sold by the beneficiaries. 

✅Technology agnostic initiative - only cells with higher performance specifications (i.e., Energy Density & Cycle Life) will be eligible to avail the incentives. 

✅There is an optimal sharing of risk between the beneficiary firm and the Government, and thus will bolster investors’ confidence.

▪️Benefits:

✅Direct investment of around Rs. 45000 crore in ACC Battery storage manufacturing projects.

✅It will give a boost to the Make in India Programme and attract global investments into setting-up of ‘Gigafactories’ here.

✅Promoting newer and niche cell technologies.

✅The manufacturing of ACCs will facilitate production and use of Electric Vehicles.

✅Import substitution of around Rs.20,000 crore every year.

✅Exploitation of non-renewable resources and dependency on oil imports will reduce.

✅It will assist in reducing emissions and hence enabling us to achieve our INDCs.

✅It will encourage the manufacturers to invest into Research & Development and to manufacture such cells in India.