The Union Minister for Power and New & Renewable Energy, Mr. R. K. Singh was chaired a meeting in New Delhi 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 Megawatt Hours (MWh).
Mr. Singh mentioned that the price of Battery Energy Storage Systems (BESS) has come down in recent years and the government will encourage setting up of BESS capacity to meet the fast-growing needs of power demand as well as energy transition.
It was discussed that the BESS should be able to deliver electricity during periods of peak demand while at 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 primarily from renewable sources during times when power generated from solar and wind sources is available.
Various models for procuring the BESS, such as those based on energy contracts and capacity contracts, the pros and cons of these models, and the challenges associated with their implementation were discussed in the meeting. 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.
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.
