What’s in the news?
- The Union Cabinet has approved the Scheme for Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS).
- The approved scheme envisages development of 4,000 MWh of BESS projects by 2030-31, with a financial support of up to 40% of the capital cost as budgetary support in the form of Viability Gap Funding (VGF).
- The move is expected to bring down the cost of battery storage systems increasing their viability.
- 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.
- The selection of BESS developers for VGF grants will be carried out through a transparent competitive bidding process, promoting a level playing field for both public and private sector entities.