The year 2022 has started on a good note for India’s renewable energy sector. Within just a few days, many important and encouraging developments have taken place in this space.
The Green Energy Corridors Phase II programme for intra-state transmission systems has been approved, Himachal Pradesh’s new energy policy has been announced with a target to install 10 GW of renewable energy capacity by 2030, and a programme has been launched by the Indian Renewable Development Agency to support the manufacturing and deployment of infrastructure for emerging technologies, green mobility and charging infrastructure. Meanwhile, large energy players such as Adani, Reliance and Hero Future Energies have announced exciting plans in the green hydrogen space.
Moreover, a recent big development has increased India’s chances of becoming a future manufacturing hub. After the success of the PLI-based solar manufacturing tender last year, the Ministry of Heavy Industries’ (MHI) tender for the selection of advanced chemistry cell (ACC) manufacturers has received a massive response.
The tender floated by MHI in November 2021 to develop 50 GWh of ACC manufacturing units under the government’s PLI scheme has been oversubscribed by 2.6 times, with bids received for 130 GWh of capacity. Reliance New Energy Solar, Hyundai Global Motors, Ola Electric Mobility, Lucas-TVS, Mahindra & Mahindra, Amara Raja Batteries, Exide Industries, Rajesh Exports, Larsen & Toubro and the India Power Corporation are the 10 companies that had bid for this capacity.
With a budgetary outlay of Rs 181 billion, the PLI scheme for ACC aims to create an enabling domestic manufacturing market for energy storage in India, which will help reduce import dependence and scale up the production of cost-competitive advanced batteries that can support India’s electric mobility and renewable energy expansion plans.
While the results of the bid are yet to be announced, the enthusiastic response to this first-of-its-kind tender paints a bright picture of India’s domestic manufacturing future – one that will promote self-reliance and sustainability of supply chains.