Ministry of Power

Union Power and New & Renewable Energy Minister

finalizes mechanisms for deployment of Battery
Energy Storage Systems to deliver Round-the-Clock
Renewable Energy

Need to build adequate BESS capacity to provide

Round-the-Clock Renewable Energy:Power and
NRE Minister R. K. Singh

Posted On: 25 FEB 2024 6:09PM by PIB Delhi

The Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, chaired a meeting in
New Delhi on February 22, 2024, to finalize the structure for operationalizing the scheme for
Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS) with
capacity of 4,000 MegawattHours (MWh).Senior officers from 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) were present.

Addressing the officers, the Power and New & Renewable Energy Minister said that the price of Battery
Energy Storage Systems (BESS) has come down in recent years. He stated that the government will
encourage setting up ofBESS capacity to meet the fast-growing needs of power demand as well as energy
transition. The Minister stated that a situation will arise in future where we have extra solar energy during the
day and extra wind energy during the evening, which would go waste if adequate storage system is not
deployed to store and utilize it when needed. Noting that the role of government is to create enabling
structures so that investment can come in, the Minister said that he wants this system to fructify in a manner
which provides energy at those times of the day and year when the nation needs it the most.

It was discussed that the BESS should be able to deliver electricity during period of peak demand while as the
same time stabilizing the grid. The power shall be supplied through different market segments in power
exchanges. The charging of BESS would be done primarilyfrom renewable sources during times when power
generatedfrom solar and windsources is available.
Various models for procuring the BESS, such as those based on energy contracts and capacity contracts, were
discussed in the meeting. The pros and cons of these models were discussed, along with the challenges
associated with their implementation.
Various sites in states rich in renewable energy were discussed as potential locations for BESS, in order to get
maximum benefit from the storage system.

Also read:
● Cost of energy storage discovered in bid is 10.18 rupees per kilowatt hour; VGF and PLI for
battery energy storage expected to bring down cost of storage: Union Power and New &
Renewable Energy Minister
● Development of 4,000 MWh Battery Energy Storage System expected to reduce carbon emissions
by 1.3 million metric tons (MMT) per year: Union Power and New & Renewable Energy Minister
● At least 85% of power from VGF-funded Battery Energy Storage Systems projects to be first
offered to Discoms before making it available for others: Union Power and New & Renewable
Energy Minister
● India begins its journey in the large scale Battery Energy Storage System (BESS) for 1000 MWh
project

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PIB DELHI | Dheep Joy Mampilly

(Release ID: 2008863)