Asia

Asia

India | Policy Push & Incentive Support

Battery Energy Storage System policy updates in 2023 Feb 2023

May 2023

June 2023

Aug 2023

VGF Support for 4 GWh of BESS

National Electricity Plan – Capacity require ment & duration mix

Indian Electricity Grid Code identifies ESS as reserves

National Framework for ESS

In Union Budget 2023, Government of India announced Battery Energy Storage Systems (BESS) with capacity of 4,000 MWh will be supported with Viability Gap Funding. In September 2023, Cabinet approved a budgetary support of Rs.3,760 crore. National Electricity Plan requires a BESS capacity of 8.68 GW/34.72 GWh may be required to fulfill the storage requirement of the grid by 2026-27. However, Battery energy storage requirements increase to 47.24 GW/236.22 GWh in addition to 26.68 GW of PSS based installed capacity for the year 2031-32.

Indian Electricity Grid Code (IEGC) Regulation, 2023 identified one of the eligible resources to participate in the ancillary markets of India, the service necessary to support the grid operation in maintaining power quality, reliability and security of the grid. National Framework for ESS was notified by Indian government with an objective to have 24X7 dispatchable RE-RTC power, to reduce overall cost of energy and reduce greenhouse gas emission, redesign energy markets to incentivize participation of ESS in market, to improve grid stability and reliability through deployment of ESS and to monitor and evaluate performance and impact of ESS and giving feedback for making policy and investment decision. Several measures were proposed to strengthen the present status of ESS deployment in India vide this framework.

Source: India Energy Storage Alliance- Annual Market Assessment Report – 2023; Cabinet; vision report; Central Electricity Regulatory Commission;

Extracted from the PDF; charts and images may read imperfectly.