Updated February 25th, 2024 at 21:39 IST

Power Minister Finalises Funding Mechanism for Round-the-Clock Renewable Energy

Union Minister RK Singh finalised the mechanisms for deploying the battery energy storage systems after a February 22 meeting

Reported by: Business Desk
RK Singh | Image:X
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Storing abundant resources: Union Power and New & Renewable Energy Minister R K Singh has finalised the mechanism of deploying funds for several projects in order to develop battery energy storage systems (BESS) in India.

These battery energy storage systems are aimed at ensuring round-the-clock supply of renewable energy.

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The announcement comes after the Minister chaired a meeting on February 22, aimed at finalising the structure to operationalise the scheme of viability gap funding in order to develop BESS with a capacity of 4,000 megawatthours, as per an official statement on Sunday.

Those present in the meeting include officials from the Power Ministry as well as those from Central Electricity Authority, and Solar Corporation of India and the NTPC Vidyut Vyapar Nigam.

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The Minister, while addressing the officials said the government will encourage setting up of BESS capacity through a viability gap funding scheme, that will meet the fast-growing needs of power demand and energy transition.

“A situation will arise in future where we have extra solar energy during the day and extra wind energy during the evening, which would go waste if adequate storage system is not deployed to store and utilize it when needed,” Singh said in his address to the officials.

The government’s role is to create enabling structures for investment to come in, the Minister said, adding that he wants this system to fructify in a manner which provides energy at those times of the day and year when the nation needs it the most.

BESS should be able to deliver electricity during period of peak demand while as the same time stabilising the grid, it was discussed. Different market segments in power exchanges will supply the power, while renewable resources will be used to charge the BESS primarily. These will be during when power generated from solar and wind sources is available.

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Besides, the ministry also discussed various sites in states rich in renewable energy as potential locations for setting up storage systems, to derive the maximum benefit.

 

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Published February 25th, 2024 at 21:39 IST