Cabinet Approves Viability Gap Funding for Battery Energy
Storage Systems
Extract:
The
recent developments in the realm of energy storage have seen the Cabinet
approving a substantial viability gap funding of 3,760 crore for battery energy
storage systems. This decision comes in the wake of the rising lithium prices
leading to an increase in battery costs, which may impact power tariffs
adversely.
The
projects' success hinges significantly on this financial support from the
government to make the storage systems economically feasible for various
stakeholders involved.
Furthermore,
with India striving to enhance its renewable energy penetration in the national
grid, the focus is on creating a conducive market environment for energy
storage. However, the geopolitical uncertainties and global commodity price
fluctuations present challenges to the timely implementation of such
initiatives.
The
government's ambitious target of achieving 4,000 MWh of battery storage
capacity underscores its commitment to integrating more renewable energy
sources into the grid infrastructure.
This move
is crucial as global battery manufacturers currently prioritize markets like
the US and Europe for storage-based renewable energy projects, leaving India
with the task of establishing itself as an attractive destination for such
investments.
Overall,
the approval of substantial funding for energy storage signifies a pivotal step
towards achieving energy security and sustainability in the country.
My Take:
Grid
Storage Battery: 4 Years and Counting!.....17/04/2022
"The
idea of setting up a standalone renewable battery power bank in India resonates
with the current scenario where the focus is on enhancing energy storage
capabilities.
Back in
my blog post, I highlighted the necessity for viability gap funding from the
government to make such projects viable amidst price fluctuations in essential
raw materials like lithium.
It's
satisfying to see the progression towards creating a market for energy storage
solutions and the government's commitment to bolster renewable energy
integration into the grid.
The
challenges posed by geopolitical uncertainties echo the concerns raised
earlier, emphasizing the need for strategic planning and robust policy
frameworks to navigate through such turbulent times."
"As
I discussed in my previous blog post, the government's target of achieving a
substantial battery storage capacity aligns with the long-term vision of
establishing a sustainable energy ecosystem.
The
increased focus on renewable energy solutions, as highlighted in the article,
underscores the importance of proactive measures to mitigate global supply
chain disruptions and price volatility.
Establishing
India as a competitive player in the energy storage market requires concerted
efforts to attract investments and foster innovation. The current developments
signify a step in the right direction towards ensuring energy security and
promoting a greener future for the country."
Call to Action:
To
the Ministry of New and Renewable Energy and key stakeholders involved in
energy storage initiatives mentioned in the article, let's continue to
collaborate and innovate to overcome challenges and realize the vision of a
robust and sustainable energy landscape in India.
Embracing
strategic partnerships and leveraging technological advancements will be
critical in achieving our renewable energy targets efficiently.
With
regards,
Hemen Parekh
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