In Short : India has tripled its battery storage target to 13,200 MWh under the Viability Gap Funding (VGF) scheme, up from 4,000 MWh, as falling costs make projects more viable. This supports India’s goal of 500 GW renewable energy by 2030, addressing intermittency issues in solar and wind power. The move aims to enhance grid stability and accelerate the transition to clean energy.
In Detail : In a significant move to boost energy storage capacity, the Indian government has tripled its battery storage target to 13,200 megawatt-hours (MWh) under the Viability Gap Funding (VGF) scheme, up from the initial target of 4,000 MWh. This decision comes as the cost of battery storage technologies continues to decline, making large-scale energy storage projects more economically viable.
The revised target reflects India’s commitment to strengthening its renewable energy infrastructure and addressing the intermittency challenges of solar and wind power. Battery storage systems are crucial for storing excess energy generated during peak production times and supplying it during periods of high demand or low generation, ensuring a stable and reliable power supply.
The VGF scheme, which provides financial support to bridge the gap between project costs and revenues, is expected to attract significant investments in the battery storage sector. This initiative aligns with India’s broader goals of achieving 500 GW of renewable energy capacity by 2030 and transitioning to a cleaner, more sustainable energy system.
The drop in battery storage costs, driven by advancements in technology and economies of scale, has been a key factor in revising the target. This trend is expected to continue, further enhancing the feasibility of large-scale energy storage projects and supporting India’s renewable energy ambitions.
The increased target underscores the government’s focus on integrating renewable energy into the grid and ensuring energy security. It also highlights the growing importance of energy storage in achieving a sustainable and resilient energy future for India.
