Union Cabinet approves ₹3,760 crore viability gap funding to boost battery energy storage
₹3,760, or up to 40% of capital cost for private players to set up battery energy storage systems, to increase renewable energy capacity, Union minister Anurag Thakur said at a briefing. Thakur said that today India meets around 15% of its its electricity requirement through renewable energy, and 25% if hydropower is included. "We have set the goal of being able to meeting 50% 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 system.
For this ₹3,760 crore will be spent. This a 100% central grant," the minister told reporters at a briefing after the cabinet meeting. This move could fetch ₹9,500 crore or more of investments into battery storage system.
Electricity demand changes as per weather and the storage system will enable storing energy for usage at night or when generation is not possible. "We have to have battery energy storage system to be able to have renewable energy 24 by 7. The goal is to have 4000 megawatt hours of battery energy storage capacity.
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