Viability Gap Funding On Cards To Promote Battery Energy Storage Systems

(MENAFN- KNN India) New Delhi, Feb 26 (KNN) The Union Minister for Power and New & Renewable Energy, R. K. Singh, led a pivotal meeting on February 22, 2024, in New Delhi, aimed at defining the framework for operationalising the Viability Gap Funding (VGF) scheme for the development of Battery Energy Storage Systems (BESS) boasting a capacity of 4,000 Megawatt-Hours (MWh).

Notable attendees included senior officials 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).

In his address, Minister Singh underscored the recent decline in the price of BESS and emphasised the government's commitment to fostering BESS infrastructure to meet the burgeoning power demand and facilitate the energy transition.

He elucidated on the potential scenario wherein surplus solar and wind energy, abundant during specific times, could be harnessed effectively only through adequate storage systems.

Minister Singh reiterated the government's role in creating conducive frameworks to attract investments, aiming for an energy delivery system responsive to the nation's needs.

Central to the discussion was the pivotal role BESS can play in delivering electricity during peak demand periods while simultaneously stabilising the grid.

Strategies for supplying power through various market segments in power exchanges were deliberated upon, with an emphasis on sourcing BESS charging primarily from renewable sources during peak generation periods.

The meeting also delved into different procurement models for BESS, including energy and capacity contracts, weighing their respective advantages, disadvantages, and implementation challenges.

Moreover, potential sites in renewable energy-rich states were explored as prime locations for BESS installations, aiming to maximise the benefits of energy storage systems.

This concerted effort marks a significant step towards leveraging BESS infrastructure to facilitate renewable energy integration into the grid, underscoring the government's commitment to sustainable energy solutions in India.

(KNN Bureau)


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