Union Power and New & Renewable Energy Minister
Cost of energy storage in bid increased to Rs 10.18 per kWh, VGF and PLI for battery energy storage expected to reduce storage cost
The Union Minister of Power and New & Renewable Energy has informed that the capacity tariff for installation of 500MW/1000MWh Battery Energy Storage System (BESS) has been fixed by Solar Energy Corporation of India (SECI) at Rs. 10.83 lakh/MW/month i.e. approximately Rs. 10.18/kWh in a tariff-based competitive bidding.
To make battery storage affordable, the government has approved a Viability Gap Funding Scheme for setting up of 4,000 MWh capacity BESS. The scheme has a provision of VGF up to 40% of the capital cost for BESS, which will reduce the cost of power.
Further, the Ministry of Heavy Industries (MHI) has launched the Production-Linked Incentive (PLI) scheme for construction of Advanced Chemistry Cell (ACC) battery storage of 2021 GWh capacity in June, 50. It includes more than 10 GWh of grid-scale battery storage. Out of 50 GWh capacity, 30 GWh capacity has already been allocated through competitive bidding process. The PLI-ACC scheme has an outlay of Rs 18,100 crore.
The PLI scheme will encourage investment in SAIL's domestic manufacturing for grid-scale applications, it will reduce dependence on imports and consequently reduce the cost of BESSs in future.
This information has been given by the Union Minister of Power and New & Renewable Energy, Shri R.K. Singh in a written reply to a question in the Rajya Sabha today, December 12, 2023.
12 DEC 2023 6:26PM by PIB Delhi