Cabinet approves ₹14,500 crore for 92 GWh energy storage scheme
The five-year programme aims to develop grid-scale storage capacity across three different technologies through fiscal 2030-31.
The Union Cabinet on Wednesday approved a ₹14,500 crore Viability Gap Funding (VGF) scheme to develop 92 GWh of grid-scale energy storage capacity, according to reports by The Hindu, Deccan Herald and Business Standard.
Information and Broadcasting Minister Ashwini Vaishnaw stated in a media briefing in New Delhi that the programme will run for five years until 2030-31. The initiative covers 30 GWh of Battery Energy Storage Systems (BESS), 60 GWh of Pumped Storage Projects and 2 GWh of emerging storage technologies.
The scheme is intended to support the development of yet-to-be-commissioned capacity, which is expected to increase India's current grid-scale energy storage by 170 per cent. This will assist the country in reaching a 411 GWh requirement by 2031-32.
A minimum 40 per cent domestic content requirement will be applied to BESS projects to encourage local manufacturing and energy security. Total investment for the programme is estimated at ₹97,600 crore.
Capacity will be distributed through tariff-based competitive bidding. Public and private distribution companies can access VGF support for BESS and hydro pumped storage projects, while both public and private entities are eligible for alternative technology projects.
The development comes as India works toward a target of 500 GW of renewable energy by 2030.