At least 85% of power from VGF-funded Battery Energy Storage Systems projects to be first offered to Discoms before making it available for others: Union Power and New & Renewable Energy Minister – EQ
In Short : The Union Power and New & Renewable Energy Minister has outlined a policy where a minimum of 85% of power generated from Battery Energy Storage Systems projects funded through Viability Gap Funding (VGF) will be initially provided to Discoms (Distribution Companies) before making it accessible to other entities. This approach prioritizes support to the distribution sector in the renewable energy landscape.
In Detail : The Union Minister for Power and New & Renewable Energy has informed that the Government has approved the scheme for Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS) with capacity of 4,000 megawatts hours (MWh).
Under the scheme, VGF to the extent of up to 40% of capital cost for BESS shall be provided by the Central Government. Public and private sector entities shall be selected through the bidding process to be conducted by the Implementing Agency(ies) as per the provisions of the Scheme and Bidding Guidelines for the development of BESS.
The projects under the scheme will be approved during a period of 3 years (2023-24 to 2025-26) and for passing on the scheme to consumers of the Discoms, at least 85% of the power from VGF-funded BESS projects shall be first offered to Discoms before making it available for others.
The selection of developers under the VGF scheme has not commenced yet.
This information has been given by the Union Minister for Power and New & Renewable Energy Shri R. K. Singh, in a written reply to a question, in Lok Sabha on December 21, 2023.
