Govt invites bids for 10 GWh grid-scale storage under PLI ACC

New Delhi: The Union heavy industries ministry on Wednesday invited bidders to develop 10 gigawatt-hour grid-scale storage systems under the ₹18,100 crore production-linked incentive scheme for advanced chemistry cell (ACC) manufacturing.

Of the 50 GWh of capacity the scheme aims to help create, 10GWh was previously earmarked for grid-scale storage, in light of the country’s growing power requirements and renewable energy deployment.

The tender will close on 13 October, and bids will be opened on 14 October, a statement said. A pre-bid conference will be held on 29 July.

The earnest money deposit is ₹10 crore, according to publicly available tender details.

In September 2024, the government awarded 10GWh of capacity to Reliance Industries Ltd, bringing RIL’s total capacity to 15GWh. Other beneficiaries are Ola Electric (20GWh) and Rajesh Exports (5GWh), together making up the 40GWh capacity already awarded.

Slow start

The PLI ACC scheme, launched in 2021, has failed to generate traction, as disbursal under the marquee battery manufacturing incentive scheme has remained zero.

The government earlier said that the unavailability of technology, a shortage of skilled manpower, delays in importing critical machinery, and the non-availability of upstream components were the key reasons why battery capacity developers had been unable to meet targets.

As of February 2026, Ola Electric had developed 1GWh of cell manufacturing capacity, while the others had developed none.

Since then, Rajesh Exports has been embroiled in controversy, with the Securities and Exchange Board of India (Sebi) alleging in early June that the Bengaluru-based company had misrepresented about ₹15.15 trillion of revenue over five years through unverifiable transactions and diverted company funds via promoter-linked entities.

The 10GWh grid-scale energy storage tender was “much-awaited” by the industry, said Debmalya Sen, president of the industry lobby India Energy Storage Alliance (IESA).

Sen estimated that, including commercial and industrial (C&I) projects, a total of 55GWh worth of projects are under execution, and another 70GWh capacity is in the tendering stage for battery energy storage services (BESS) alone, reflecting the scale of India’s progress in energy storage capacity.

Critical infrastructure

Grid-scale energy storage is critical for storing surplus electricity and supplying it when demand rises. India routinely curtails solar generation during peak daylight hours because of inadequate storage capacity, forcing renewable power to be backed down when the grid cannot absorb the excess.

BESS, touted to be the fulcrum of global energy transition and the planned pivot from fossil fuels, are seen as critical to India’s energy transition, as they store electricity and supply it to the grid during peak demand. India aims to achieve 500GW of non-fossil capacity, including wind and solar, by 2030.

“The 10GWh capacity earmarked for Grid Scale Stationary Storage application will support the country’s growing energy storage requirements arising from rapid renewable energy deployment, strengthening energy security, reducing import dependence, and developing a globally competitive battery manufacturing ecosystem,” the ministry said in the statement.

Experts say that government-supported grid-scale energy storage will be utilized effectively. “10GWh, assuming a 4-hour duration of storage, is in the order of 2.5GW electrical capacity output. The estimated growth in demand for energy storage is several times higher each year. Thus, this amount, assuming it is priced right, will be utilized easily,” said Rahul Tongia, senior fellow at the Centre for Social and Economic Progress.

Some experts also said that India’s battery ecosystem is still far from self-reliance. “At this point, the concern is that India does not have its own battery-grade materials, including battery-grade water. Also, the cost of setting up a lithium battery cell manufacturing plant has come down over the years, but it is still at least $100 million to develop 1GWh of capacity,” said Reji Kumar Pillai, president of the power ministry-backed think tank India Smart Grid Forum.