The Ministry of Power (MoP) has released operational guidelines for a programme worth Rs 94 billion.
This initiative aims to offer viability gap funding (VGF) of up to 40 per cent to facilitate the development of 4,000 MWh of battery energy storage systems (BESS) capacity nationwide. The initiative will span a duration of three years, starting from 2023-24 and concluding in 2025-26, with a budgetary allocation of Rs 37.6 billion. The programme additionally mandates that projects must be commissioned within 24 months from the date of signing the agreement. Funds will be distributed in five installments, contingent upon achieving milestones such as financial closure and commencement of commercial operations. Project allocations will adhere to the tariff-based competitive bidding process outlined in the MoP guidelines. Developers will compete by proposing the lowest annualised fixed costs within tariff caps established by a committee.