New Delhi: The government on Wednesday approved INR 3,760 crore Central support for 4,000 MWh (megawatt-hour) battery storage capacity proposed to be built by 2030-31 with a view to making tariff affordable.
Grid-size battery storage has emerged as a focus area as the government is looking at supplying 50% power from non-fossil sources by 2030. Battery storages are akin to giant power banks that are charged using solar or wind power during the day and supply electricity in the night or when there is no wind, ensuring continuous availability of green power.
Storage tariffs are currently unviable due to high battery costs and non-existent market. The government is aiming at a levelized storage cost of between INR 5.50-INR 6.60 per kilowatt-hour to make stored renewable energy a viable option for managing peak demand.
The support, by way of viability gap funding or VGF, will be released in five tranches and amount to upto 40% of the capital cost of the proposed capacity.
A minimum of 85% of the battery storage capacity will be made available to power distribution companies (discoms) so that the benefits reach consumers, the government said.
The selection of promoters for project support will be done through competitive bidding process, promoting a level-playing field for both public and private sector entities.
India’s solar capacity has increased from 2.6 gigawatt (GW) in 2014 to 71 GW at present. Wind energy capacity has increased from 21 GW to 40 GW during the same period.
