RF Bureau: A scheme called Instrumental Vacuum Fund for development of Battery Fuel Storage System (BESS) has received Cabinet approval. The government launched the BESS scheme to activate the country for a brighter future. Under this scheme, a total of 4,000 MW-hour BESS projects will be developed by 2030-31 through competitive auctions. If this plan is implemented, storage costs for distribution companies and consumers can be reduced.

A scheme called Viability Gap Funding (VGF) for the development of Battery Fuel Storage System (BESS) has been approved in the Union Cabinet meeting chaired by the Prime Minister. The approved plan targets development of 4,000 MW-hour BESS projects by 2030-31.

For this, up to 40% financial assistance will be provided in the form of Viability Gap Funding (VGF). This move is expected to reduce the cost of battery storage systems. Designed to harness the potential of renewable energy sources like solar and wind power, the scheme aims to provide clean, reliable and affordable electricity to citizens.

An initial outlay of Rs 9,400 crore has been earmarked for this. For this, there is a budget support of Rs.3,760 crore. The scheme aims to achieve a Level Cost of Storage (LCOS) of Rs 5.50-6.60 per kilowatt-hour (kWh), making stored renewable energy a viable option for managing peak power demand across the country.

The Government of India is committed to promoting clean and green energy solutions. The BESS scheme is an important step towards achieving this goal. By promoting the use of renewable energy and adoption of battery storage, the government aims to create a brighter and greener future for all citizens.