The Union Minister for Power and New & Renewable Energy has informed that in the tariff-based competitive bid for installation of 500 MW / 1000 MWh Battery Energy Storage System (BESS) by the Solar Energy Corporation of India (SECI), the capacity charge discovered is Rs. 10.83 lac / MW / month translating into about Rs. 10.18 / kWh.

In order to make battery storage affordable, Government has approved a Viability Gap Funding Scheme for setting up 4,000 MWh of BESS.  The Scheme has provision for VGF to the extent of up to 40% of capital cost for BESS, which will bring down the cost of electricity from BESS.

Further, Ministry of Heavy Industries (MHI), in June, 2021 has launched a Production-Linked Incentive (PLI) scheme for the manufacturing of Advanced Chemistry Cell (ACC) battery storage of 50 GWh capacity, which includes more than 10 GWh grid-scale battery storage. Out of 50 GWh capacity, 30 GWh capacity has already been allotted through competitive bidding process. The PLI-ACC scheme has an outlay of Rs 18,100 Crores.

The PLI scheme would encourage investment in the domestic manufacturing of cells for grid-scale applications, reduce dependency on imports and result in reduction of cost of BESS in future.

This information has been given by the Union Minister for Power and New & Renewable Energy Shri R. K. Singh, in a written reply to a question, in Rajya Sabha today, December 12, 2023.

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PIB DELHI | Alok Mishra / Dheep Joy Mampilly

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