Union Cabinet approves ₹14,500 crore for 92 GWh grid-scale energy storage systems
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains·
Energy storage and Viability Gap Funding: a key GS3 topic for renewable energy transition and grid stability.
Why in news
The Union Cabinet approved ₹14,500 crore in viability gap funding to develop 92 GWh of grid-scale energy storage systems to support India's 500 GW renewable energy target by 2030.
Background
The Union Cabinet approved ₹14,500 crore for energy storage systems between FY27 and FY31. The scheme covers Battery Energy Storage Systems (30 GWh), Pumped Storage Projects (60 GWh), and Emerging Storage Technologies (2GW).
Facts for Prelims
- FactTotal approved funding: ₹14,500 crore
- FactTotal storage capacity target: 92 GWh
- FactBattery Energy Storage System (BESS) allocation: 30 GWh
- FactPumped Storage Projects allocation: 60 GWh
- FactEmerging Storage Technologies allocation: 2GW
Prelims practice question
With reference to the Union Cabinet's approval for grid-scale energy storage systems, consider the following statements:
- The allocation for Pumped Storage Projects is 30 GWh.
- The total approved funding for the energy storage systems is ₹14,500 crore.
- The scheme covers a total storage capacity of 100 GWh.
Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)1 and 2 only
- (d)2 and 3 only
Show answer
Answer: (b) 2 only — Statement 2 is correct. Statement 1 is incorrect: The allocation for Pumped Storage Projects is 60 GWh. Statement 3 is incorrect: The total storage capacity target is 92 GWh.
For Mains
Q. Discuss the significance of grid-scale energy storage systems in achieving India's renewable energy targets and the role of viability gap funding in de-risking these projects.
Dimensions to cover in your answer
- Intermittency mitigation: Addressing the variability of solar and wind power through large-scale storage
- Fiscal intervention: Using viability gap funding to bridge the high capital expenditure gap in pumped storage
- Technological diversification: Balancing established BESS with emerging storage technologies to ensure grid stability
Keywords: Viability Gap Funding · Grid Stability · Renewable Energy Transition · Energy Storage Systems · Decarbonization
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