Union Minister for Power and New & Renewable Energy, R. K. Singh, led a pivotal meeting in New Delhi to solidify the operational structure for the scheme involving Viability Gap Funding (VGF) aimed at fostering the development of Battery Energy Storage Systems (BESS) with a capacity of 4,000 MegawattHours (MWh).
The meeting, attended by senior officials 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), marked a crucial step in the nation’s pursuit of reliable round-the-clock renewable energy.
In his address, the Minister highlighted the notable decrease in the price of Battery Energy Storage Systems (BESS) in recent years. He emphasized the government’s commitment to fostering BESS capacity to meet the burgeoning demand for power and facilitate the ongoing energy transition.
‘With the decreasing cost of BESS, we are poised to encourage its widespread adoption to effectively harness surplus solar and wind energy,’ stated the Minister. He foresees a future scenario where surplus energy from these renewable sources could go to waste without adequate storage mechanisms.
The Minister underscored the government’s role in creating conducive frameworks to attract investments, ensuring that the energy storage system materializes to supply power precisely when the nation needs it the most, especially during peak demand periods.
The discussion centered on BESS’s crucial role in delivering electricity during peak demand periods while simultaneously stabilizing the grid. Plans were outlined to supply power through different market segments in power exchanges, primarily charging the BESS from renewable sources when solar and wind energy generation is abundant.
During the meeting, various procurement models for BESS were deliberated upon, including those based on energy contracts and capacity contracts. The benefits, drawbacks, and associated implementation challenges of these models were thoroughly examined.
Additionally, potential sites in states abundant in renewable energy resources were identified as prime locations for BESS deployment, aiming to maximize the benefits of these storage systems.
