Government plans Rs. 15 k crore push for batteries

Government plans Rs. 15 k crore push for batteries

Subject: Economy

Section: Infrastructure

Key points:

• Government is working to bring a production linked incentive (PLI) scheme worth as much as 15,000 crore to encourage the setting up of grid-scale battery storage.
• Will be ensured that coverage does not overlap with the existing PLI scheme for advanced chemistry cells (ACC).
  • ACC have high ramp rate, used for e-vehicles
  • BESS batteries need grid stability and flow of power at regular frequency as the main features
• Important for India to achieve the 500 GW renewable energy target by 2030.
• Required for two purposes:
  • Grid stability: the renewable sources like wind and solar energy have wide variations as per time of day or seasons.
  • Ensuring peak power: the peak power demand is much higher than what the renewable source can supply.
• No specification on type of batteries yet, as it is an evolving field. Various batteries like: Lithium ion batteries, Sodium Ion batteries, vanadium redox batteries are eligible for incentive if they are found economically viable.
• Union Budget 2023-24 also mentioned viability gap funding (VGF) for BESS with capacity of 4,000 MWh.
  • VGF capacities are to support the immediate requirements of storage systems
  • The PLI for BESS is for the future supplies, so as to reduce import dependence.
• Last year the Power Ministry also issued guidelines for procuring and utilizing BESS as part of generation, transmission, and distribution. Similar to renewable-purchase obligation, it notifies energy storage obligations of 4% of total energy consumption by FY30 for the power discoms.
• Present energy storage capacity installed is around 40 KWh.