Cabinet approves Rs 14,500 crore scheme for energy storage capacity
The funding will support 92 GWh of grid-scale storage systems between FY27 and FY31 to help integrate renewable energy.
The Union Cabinet on Wednesday approved a Rs 14,500 crore viability gap funding (VGF) scheme to develop 92 GWh of grid-scale energy storage capacity. According to The Hindu, the programme will run for five years from FY27 to FY31.
Information and Broadcasting Minister Ashwini Vaishnaw stated in a New Delhi media briefing that the capacity will be split across three technologies. This includes 30 GWh for Battery Energy Storage Systems (BESS), 60 GWh for Pumped Storage Projects, and 2 GWh for emerging storage technologies.
Moneycontrol reported that the projects are expected to involve a total investment of Rs 97,600 crore. The 92 GWh addition is roughly 170 per cent of India's current grid-scale storage and aims to meet about 22 per cent of the 411.4 GWh requirement projected by the Central Electricity Authority (CEA) for FY32.
Under the new rules, energy storage capacity will be assigned via competitive bidding based on tariffs. Both public and private electricity distribution companies can access VGF for pumped hydro and battery projects, while both sectors can implement alternative storage technology projects.
To encourage local production, battery storage projects must meet a minimum domestic content requirement of 40 per cent. The government said this measure is intended to boost indigenous manufacturing and lower reliance on imported parts.