Government Support: Government okays ₹3,760 crore support for battery storage projects

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NEW DELHI: The federal government on Wednesday permitted Rs 3,760 crore help for 4,000MWh (megawatt-hour) battery storage capability proposed to be constructed by 2030-31 with a view to creating tariffs inexpensive.
Grid-size battery storage has emerged as a spotlight space as the federal government is taking a look at supplying 50% energy from non-fossil sources by 2030. Battery storages are akin to large energy banks which can be charged utilizing photo voltaic or wind energy through the day and provide electrical energy within the evening or when there isn’t any wind, making certain steady availability of inexperienced energy.

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Storage tariffs are presently unviable as a consequence of excessive battery prices and non-existent market. The federal government is aiming at a levelised storage value of Rs 5.50-Rs 6.60 per kilowatt-hour to make saved renewable power a viable choice for managing peak demand. The help, by the use of viability hole funding or VGF, will probably be launched in 5 tranches and quantity to as much as 40% of the capital value of the proposed capability.
A minimal of 85% of the battery storage capability will probably be made accessible to energy distribution corporations (discoms) in order that the advantages attain shoppers, the federal government mentioned.
The choice of promoters for venture help will probably be accomplished by way of aggressive bidding course of, selling a level-playing subject for each private and non-private sector entities. India’s photo voltaic capability has elevated from 2.6 gigawatt (GW) in 2014 to 71GW at current. Wind power capability has elevated from 21GW to 40GW throughout the identical interval.

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