In a significant move to boost India’s energy storage capabilities, the Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, presided over a crucial meeting in New Delhi on February 22, 2024. The gathering aimed to solidify the framework for implementing a scheme dedicated to Viability Gap Funding (VGF) for the establishment of Battery Energy Storage Systems (BESS) with a substantial capacity of 4,000 Megawatt Hours (MWh). The meeting saw the attendance of high-ranking officials from various key departments, including the Ministry of Power, Ministry of New & Renewable Energy, Central Electricity Authority, Solar Energy Corporation of India, Grid India, and NTPC Vidyut Vyapar Nigam Ltd. (NVVN).
During the meeting, Shri Singh highlighted the significant reduction in the costs of BESS in recent years and emphasized the government’s commitment to fostering the development of BESS capacities. This initiative is in response to the escalating demand for power and the ongoing transition towards renewable energy sources. Shri Singh underscored the importance of establishing efficient energy storage solutions to capture and utilize the surplus solar and wind energy generated during specific times of the day, thereby preventing waste and ensuring energy availability when it is most needed.
The minister stressed the government’s role in creating conducive frameworks to attract investment into this sector, with the ultimate goal of supplying energy during peak demand periods and stabilizing the national grid. The discussions also explored the feasibility of charging BESS primarily with renewable energy, capitalizing on the periods of high solar and wind energy production.
Various procurement models for BESS, including energy contracts and capacity contracts, were deliberated upon. The advantages and challenges associated with these models were examined to identify the most effective approach for integrating BESS into India’s energy landscape. Additionally, potential sites for BESS installations were identified in states with abundant renewable energy resources to maximize the benefits derived from these storage systems.
This initiative marks a significant step towards enhancing India’s energy storage and distribution capabilities, aligning with the country’s ambitious goals for renewable energy adoption and sustainability.
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