Cabinet approves the Scheme titled Viability Gap Funding for development of Battery Energy Storage Systems (BESS)
- The Union Cabinet, chaired by the Hon’ble Prime Minister has approved the Scheme for Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS). BESS are devices that enable energy from renewables, like solar and wind, to be stored and then released when the power is needed most.
- Under the scheme, 4,000 MWh of BESS projects will be developed by 2030-31.
- Further, the project will provide financial support of up to 40% of the capital cost as budgetary support in the form of Viability Gap Funding (VGF).
- Outlay of the scheme: The VGF for the development of the BESS Scheme has an initial outlay of Rs.9,400 crore. This includes a budgetary support of Rs.3,760 crore.
- To ensure that the benefits of the scheme reach the consumers, a minimum of 85% of the BESS project capacity will be made available to Distribution Companies (Discoms).
Points to remember:
- Total outlay of Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS)?- Rs.9,400 crore