India Joins First-of-its-Kind Consortium to Advance Deployment of BESS
Through the BESS Consortium, India is among the first-mover countries as a part of the collaborative effort to secure 5 gigawatts (GW) of BESS commitments by the end of 2024.
December 04, 2023. By News Bureau
Through the BESS Consortium, India is among the first-mover countries as a part of the collaborative effort to secure 5 gigawatts (GW) of BESS commitments by the end of 2024.
India has taken significant steps for the integration of BESS, which will be crucial in supporting its goal of energy security and access to reliable round-the-clock energy for all.
In September this year, the Government of India approved a scheme committing to the development of 4,000 MWh of BESS projects by 2030-31, with financial support of up to 40% of the capital cost to developers in the form of Viability Gap Funding (VGF). The scheme is expected to bring down the costs of BESS infrastructure projects and incentivise public-private partnerships.
Commenting on the announcement, Saurabh Kumar, Vice President - India, GEAPP, said, "The BESS Consortium is an example of GEAPP's firm belief in the power of collaborative actions and partnerships to achieve people-positive energy transition. The expansion of BESS is crucial to bring down the current high cost to resolve the issue of intermittency and lead to accelerated RE integration. It would also help fast-track innovative regulations that will unlock the value streams on batteries and provide much-needed balancing support to the grid. This would positively impact the demand for RE, which is imperative for a Net Zero future."
At The Energy Transition Dialogues (TETD) organised by GEAPP in New Delhi last month, a comprehensive report titled ‘Powering Progress: Batteries for Discoms - A Market Action Report on Accelerating Battery Energy Storage in India’ was released.
This report is a result of the collective effort by GEAPP and RMI. It elaborated that approximately 42 GW (208 GWh) of BESS would be required to integrate 392 GW of VRE (100 GW of wind and 292 GW of solar) by 2030. It also found that integrating increasing amounts of VRE resources, mainly solar and wind, is a major factor driving grid storage adoption.
During the event, GEAPP also announced the expansion of its Battery Energy Storage System (BESS) project in India, which aims to achieve the target of 1GW for DISCOMS under BESS by 2026. IndiGrid, India’s first power sector infrastructure investment trust, was awarded its first BESS project to design, supply, test, install, commission, operate, and maintain a 20 MW/40 MWh in Delhi.
GEAPP aims to provide concessional debt financing for 70 per cent of the total capital investment and technical assistance for the project. The implementation provides a new pathway since many similar projects have been stuck due to high costs and regulatory bottlenecks. GEAPP will continue to work on a scale-up plan with DISCOMs to achieve the target of 200 MW by providing technical assistance and concessional funding.
Barbados, Belize, Egypt, Ghana, Kenya, Malawi, Mauritania, Mozambique, Nigeria, and Togo are the other first-mover countries that have committed to the BESS Consortium, with Indonesia showing strong interest. In order to achieve the estimated 400 GW of renewable energy needed to alleviate energy poverty by 2030, and save a gigaton of CO2, 90 GW of storage capacity must be developed.
The BESS Consortium’s initial 5 GW goal will help create a roadmap for achieving the rest by 2030.
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