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

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Delhi:  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.

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