Cabinet approves Rs 3,760 crore viability gap funding for setting up battery energy storage system
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Information and Broadcasting Minister Anurag Thakur has said that the Union Cabinet has approved a Rs 3,760 crore viability gap funding for setting up battery energy storage system in the country. The entire Rs 3,760 crore viability gap funding will be borne by the central government. The fund will be released in five tranches till 2030-31 and help in creation of 4,000 MW hours storage. The viability gap funding will lead to an investment of Rs 9,500 crore.
The minister opined that the scheme is in sync with India's ambition to meet its 50% of energy requirements through renewable energy and non-fossil energy sources by 2030 and also help reduce carbon emission. The move is expected to bring down the cost of battery storage systems increasing their viability.
He further said designed to harness the potential of renewable energy sources such as solar and wind power, the scheme aims to provide clean, reliable, and affordable electricity to the citizens. He added that this will not only enhance the integration of renewable energy into the electricity grid but also minimize wastage while optimising the utilisation of transmission networks.
