The Union cabinet on Wednesday approved viability gap funding worth Rs 3,760, or up to 40% of capital cost for private players to set up battery energy storage systems, to increase renewable energy capacity, Union minister Anurag Thakur said at a briefing.
Thakur said that today India meets around 15% of its its electricity requirement through renewable energy, and 25% if hydropower is included.
"We have set the goal of being able to meeting 50% of our energy requirement from renewable or non-fossil energy sources by 2030.
We are committed to this.
We have also met other targets before time. Today a big decision has been taken in that direction to facilitate viability gap funding (VGF) for setting up battery energy storage system. For this Rs 3,760 crore will be spent. This a 100% central grant," the minister told reporters at a briefing after the cabinet meeting.This move could fetch Rs 9,500 crore or more of investments into battery storage system.
We have also met other targets before time. Today a big decision has been taken in that direction to facilitate viability gap funding (VGF) for setting up battery energy storage system. For this Rs 3,760 crore will be spent. This a 100% central grant," the minister told reporters at a briefing after the cabinet meeting.This move could fetch Rs 9,500 crore or more of investments into battery storage system.
Electricity demand changes as per weather and the storage system will enable storing energy for usage at night or when generation is not possible.
"We have to have battery energy storage system to be able to have renewable energy 24 by 7.
The goal is to have 4000 megawatt hours of battery energy storage capacity. VGF will be restricted to 40% of the capital cost. The VGF will be given in five tranches up to FY31," the minister said.
The goal is to have 4000 megawatt hours of battery energy storage capacity. VGF will be restricted to 40% of the capital cost. The VGF will be given in five tranches up to FY31," the minister said.
