New Delhi: In a concerted effort to bolster round-the-clock renewable energy availability, power and new & renewable energy minister, R. K. Singh, emphasized the importance of developing sufficient Battery Energy Storage Systems (BESS) capacity to ensure the availability of round-the-clock renewable energy.
During a meeting in New Delhi on February 22, 2024, aimed at finalizing the Viability Gap Funding (VGF) scheme for BESS development, Singh underscored the necessity of establishing a 4,000 MegawattHours (MWh) capacity to meet the growing power demand and facilitate the nation’s energy transition.
The meeting brought together senior officials from various energy sectors to discuss the operationalization of the Viability Gap Funding (VGF) scheme for BESS development, marking a significant step towards ensuring energy security and environmental sustainability in India.
“The government will encourage setting up of BESS capacity to meet the fast-growing needs of power demand as well as energy transition,” Singh stated during the meeting. He highlighted the potential future scenario of having surplus solar energy during the day and wind energy in the evening, which would go to waste without an adequate storage system to store and utilize it when necessary.
The meeting also covered discussions on how BESS should deliver electricity during peak demand periods while stabilizing the grid. It was determined that the power supplied through BESS would be channeled via different market segments in power exchanges, with the charging of BESS being done primarily from renewable sources.
Various models for procuring BESS, including energy contracts and capacity contracts, were deliberated upon. Potential locations for BESS installations in states rich in renewable energy were identified to maximize the benefits of the storage system.
