Govt finalises funding mechanism for battery energy storage system project

Union Power and New & Renewable Energy Minister R K Singh has finalised the mechanism for deployment of funds for various projects to develop battery energy storage systems in the country.

Battery energy storage systems (BESS) will ensure round-the-clock supply of renewable energy.

The minister chaired a meeting on February 22 to finalise the structure for operationalising the scheme of viability gap funding for development of BESS with the capacity of 4,000 megawatthours (MWh), an official statement said on Sunday.

Officials from the power ministry and those from Central Electricity Authority, Solar Energy Corporation of India, Grid India, and NTPC Vidyut Vyapar Nigam Ltd. (NVVN) were present in the meeting.

Addressing the officials, Singh said that the government will encourage setting up of BESS capacity through a viability gap funding scheme to meet the fast-growing needs of power demand as well as energy transition.

The minister said when we have extra solar energy during the day and extra wind energy during the evening, the energy would go waste in the absence of adequate storage system. It was discussed that the BESS should be able to deliver electricity during the period of peak demand while at the same time stabilizing the grid, the statement said.

Besides, the ministry also discussed various sites in states rich in renewable energy as potential locations for setting up storage systems in order to get maximum benefit.