The Union Cabinet on Wednesday approved viability gap funding worth Rs 3,760 for battery energy storage systems to increase renewable energy capacity, Union Minister Anurag Thakur said.
He said India meets around 15 per cent of its electricity requirement through renewable energy and 25 per cent if hydropower is included.
Thakur said, “We have set the goal of being able to meet 50 per cent of our energy requirement from renewable or non-fossil energy sources by 2030. We are committed to this. We have also met other targets before time. Today, a big decision has been taken in that direction to facilitate viability gap funding (VGF) for setting up battery energy storage systems. For this, Rs 3,760 crore will be spent. This is a 100 per cent central grant.”
This move would help get Rs 9,500 crore or more of investments into battery storage systems.
The weather plays a crucial role in changing electricity demand, and the storage system will enable storing energy for usage at night or when generation is not possible.
The minister said, “We have to have a battery energy storage system to be able to have renewable energy 24 by 7. The goal is to have 4,000 megawatts of hours of battery energy storage capacity. The VGF will be restricted to 40 per cent of the capital cost. The VGF will be given in five tranches up to FY31.”
First Published: Sep 06 2023 | 5:36 PM IST