The Centre on Wednesday announced Rs 3,760 crore viability gap funding (VGF) to boost infrastructure for battery energy storage systems (BESS) projects in India.
India aims to meet its 50% energy needs through renewable sources by 2030. The scheme is designed to harness the potential of solar and wind power.
Mr. Anurag Thakur, Union Minister for Information & Broadcasting and Youth Affairs & Sports, GoI, said, “The government will spend Rs. 3,760 crore and it will be a 100 percent central grant… Battery energy storage systems are key to fulfilling rising energy demands.”
He added, “We don’t have the capacity. The VGF will help add 4,000 MW hours of battery energy storage systems by 2025-26…Power distributing companies (discoms) will be the first beneficiaries.”
The minister said that by offering VGF support, GoI wants to achieve levelized cost of storage (LCoS) ranging from ₹5.50-6.60 per kilowatt-hour (kWh), making stored renewable energy a viable option to manage peak power demand across the country. Carbon emissions will be reduced as the dependency on fossil fuel will decrease.”
The funding will be disbursed in five tranches, which will be linked with the various stages of implementation of BESS projects, Mr Thakur said.