The government approved £376 million support for 4,000MWh (megawatt hour) battery storage capacity proposed to be built by 2030-31 with a view to making tariffs affordable.
Grid-scale battery storage has been a focal area as the government wants to supply 50% of the nation's electricity from non-fossil sources by 2030. Similar to massive power banks, battery storages ensure continuous access to green energy by charging with solar or wind energy during the day and supplying electricity at night or when there is no wind.
Due to expensive batteries and a lack of markets, storage charges are now unprofitable. To make stored renewable energy a workable option for regulating peak demand, the government is aiming for a levelized storage cost of Rs 5.50– 6.60 per kilowatt-hour. Viability gap finance, or VGF, will provide the support, which can cover up to 40% of the proposed capacity's capital cost, and will be made available in five instalments.
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.
A competitive bidding process will be used to choose project promoters, ensuring an even playing field for both public and private sector organisations. India now has 71 gigawatts (GW) of solar capacity, up from 2.6 GW in 2014. Wind energy capacity has increased from 21GW to 40GW during the same period.