Accommodating our Energy Generation Surplus with the use of ESS : A Government VGF Scheme

The Government of India released a Viability Gap Funding Scheme for Energy Storage Schemes worth over $1.1B USD
focusing on reducing the cost of storage systems. This scheme will include both Pumped Storage Systems (PSS) and
Battery Energy Storage Systems (BESS) awarding legal status and reducing regulations on ESS.
Expected Growth of BESS Introduction of Viability Gap Funding Scheme for Battery Energy Storage System Projects

CAGR : 17.8% Proposed Capacity: 4000MWh This enables the company to

OF the storage capacity
gain access to an Inter State
41.6 Capital Support: 40% must be allocated to
85% transmission Grid on priority
8.6 In GWh Distribution companies
basis. Rest 25% can be sold to
Total Capital: $452M USD if the scheme is taken
'26-’27 ’29-’30 other consumers

Benefits of ESS to the consumers Concessional Green Mandating new RE Increasing energy
Finance establishment projects (>5MW) to storage obligation
PROPOSED STRATEGIES

• Reduction in peak deficit 1 for long term finance by 3 install at least 5% ESS 5 from 1% (‘23-’24) to 4%
• Reduction in peak tariff bodies such as PFC, excluding Hydro power (‘29-’30) and
• Carbon emission reduction REC, IREDA. plants increasing total RPO.
• Buy Low, Use High

Benefits of ESS to Power Sector

Wavering Interstate
transmission costs and
• Reduced Fluctuations
2 new guidelines for
• Reliability and Stability
Round the Clock
• Increased use of RE
(RTC) RE bidding.
• Energy Independence
Minimum percentage
of power to be
4 obtained through RE
6
ESS within a particular
area of distribution
ESS developers and
intermediate agencies
are permitted to offer
other market based
energy, power products*

Gowthamraja RM grm@180dc.org NIT Trichy Department of Electrical and Electronics Engineering *Spot Energy Market, Energy Arbitrage