Centre invites global bids for 10 GWh ACC battery manufacturing under PLI scheme
A global tender was released inviting bids for setting up 10 GWh of Advanced Chemistry Cell (ACC) battery manufacturing capacity earmarked for Grid-Scale Stationary Storage (GSSS) applications
The tender is administered by the Ministry of Heavy Industries under the Production Linked Incentive (PLI) Scheme for ACC Battery Storage
Bidding will be conducted through a two-stage Quality and Cost Based Selection (QCBS) mechanism on the Central Public Procurement (CPP) Portal, with a pre-bid conference and technical bid opening scheduled in the following months
This 10 GWh tranche is the remaining, previously unallotted portion of the scheme's overall 50 GWh target capacity, of which 40 GWh has already been awarded to domestic manufacturers
The tender is aimed at supporting India's growing energy storage requirements arising from rapid renewable energy deployment and reducing import dependence on battery cells
PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage
The National Programme on Advanced Chemistry Cell (ACC) Battery Storage was approved by the Union Cabinet on 12 May 2021 with a budgetary outlay of ₹18,100 crore, administered by the Ministry of Heavy Industries. It aims to build 50 GWh of ACC manufacturing capacity in India through "Giga-scale" facilities, with an emphasis on maximum domestic value addition, to strengthen the ecosystem for electric mobility and battery storage.
Key Details
- Approved: 12 May 2021; outlay: ₹18,100 crore; target capacity: 50 GWh; nodal ministry: Ministry of Heavy Industries
- Beneficiary firms must achieve domestic value addition of at least 25% initially, rising to 60% within 5 years
- Mandatory investment requirement: ₹225 crore per GWh of committed capacity within 2 years
- Four companies were selected in the original allotment round: Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors, and Rajesh Exports, together accounting for 40 GWh
The 10 GWh tender now being opened globally is the balance capacity from the scheme's original 50 GWh target, redirected specifically toward grid-scale stationary storage rather than electric-vehicle batteries, reflecting a shift in emphasis toward renewable-energy grid integration.
Advanced Chemistry Cell — Technology and Application Distinction
An Advanced Chemistry Cell is any electro-chemical energy storage technology that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy, offering higher energy density and longer cycle life than conventional lead-acid batteries. ACCs are used in two broad application classes: mobile applications (electric vehicles, consumer electronics) and stationary applications (grid-scale storage to firm up intermittent renewable generation).
Key Details
- Common ACC chemistries include lithium-ion variants (NMC, LFP) and emerging sodium-ion cells
- Grid-Scale Stationary Storage (GSSS) differs from EV batteries mainly in duty cycle, cost sensitivity, and safety/cycling requirements, not core chemistry
- India currently has negligible domestic ACC cell manufacturing and imports the bulk of its lithium-ion cell requirement
By carving out a dedicated GSSS tranche within the ACC PLI scheme, the tender formally recognises stationary grid storage as a distinct manufacturing use-case from EV batteries, requiring separate technical qualification criteria in the bid.
Quality and Cost Based Selection (QCBS) — Government Procurement Method
QCBS is a procurement method under Rule 192 of the General Financial Rules (GFR), 2017, used for selecting service providers or capacity allocations where both technical quality and cost matter. Bidders are scored on a weighted combination of technical merit and financial bid, with the rules capping the weightage given to technical (non-financial) parameters at a maximum of 80%, ensuring cost is always given a meaningful role in the decision.
Key Details
- Governed by Rule 192, General Financial Rules, 2017
- Technical score and financial score are each weighted and combined; the highest combined weighted score wins
- Commonly used for consultancy and capacity-allocation tenders where quality (technical capability) cannot be assessed by price alone
The ACC battery tender's two-stage QCBS process ensures bidders are evaluated for their manufacturing/technical capability for grid-scale cells, not solely on the lowest price or incentive sought, consistent with the GFR framework for high-value government-linked capacity allocation.
Renewable Energy Integration and Grid-Scale Storage Policy
As India scales up renewable energy capacity, matching intermittent solar and wind generation with demand requires battery energy storage systems (BESS) at the grid level. The Ministry of Power's Energy Storage Obligation (ESO) framework requires obligated entities to progressively increase the share of stored energy in their electricity procurement, with at least 85% of the energy procured and stored required to come from renewable sources on an annual basis.
Key Details
- Central Electricity Authority estimates for storage needs have ranged upward over successive assessments as renewable capacity targets have grown
- Energy Storage Obligation requires that a minimum share of annual energy procurement/storage come from renewable sources (85% threshold)
- Grid-scale BESS supports "round-the-clock" (RTC) renewable power supply, a stated objective of recent Ministry of Power guidelines
The 10 GWh GSSS tender directly supports domestic manufacturing capacity for the battery storage that the Energy Storage Obligation framework requires utilities to procure, reducing India's dependence on imported grid-scale storage cells.
- ACC PLI scheme approved: 12 May 2021; outlay: ₹18,100 crore; total target capacity: 50 GWh
- Capacity already awarded to domestic manufacturers: 40 GWh (4 companies: Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors, Rajesh Exports)
- Capacity now under global tender: 10 GWh, earmarked for Grid-Scale Stationary Storage (GSSS)
- Selection mechanism: two-stage Quality and Cost Based Selection (QCBS) on the Central Public Procurement (CPP) Portal
- Nodal ministry: Ministry of Heavy Industries
- Domestic value addition requirement: minimum 25% initially, rising to 60% within 5 years
- Mandatory investment norm: ₹225 crore per GWh of committed capacity within 2 years
- Energy Storage Obligation: minimum 85% of annual stored/procured energy must come from renewable sources