India largest Battery Energy Storage System (BESS) Initiative – 2025

Objective of India’s largest Battery Energy Storage Initiative (2025):

The Government of India has launched an important scheme to promote battery energy storage systems in 2025. The main objective is to ensure an uninterrupted supply of renewable energy (solar and wind) and strengthen India’s energy security.

• The following are the main objectives of the Government of India initiative:
• To promote the establishment of a large-scale battery energy storage system.
• To effectively integrate renewable sources like solar and wind energy into the grid.
• Ensure a 24/7 clean energy supply in India.
• Increasing the stability and reliability of India’s grid.
• Help India achieve the zero-carbon emission target.
• To promote cost-effective and useful energy storage to India through Viability Gap Funding (VGF) and Policy Assistance.
• Encourage domestic manufacturing and innovation under Make in India.

🧩 (Key Features):

1 ) Viability Gap Funding (VGF)

• Target capacity: 13,200 MWh.
• Government grant: 3,760 crore.
• Subsidy: up to 40% of the total project cost.
• Beneficiaries: Central Agencies (ntpc, seci) and State Governments.

2 )To exempt interstate transmission charges, Transmission charges are completely waived.

• Dated: 30th June, 2028.
• Beneficiaries: Standalone Bess, Co-located Bess, and Pumped Hydro Projects.

3 )State-wise allocation

• Rajasthan: Grant Rs 720 crore for 4 gw capacity.
• Other States: Tamil Nadu, Maharashtra, Gujarat, Telangana, Karnataka, Bihar, Kerala.

4 )This is India’s first professional fitness project.

• Location: Delhi
• Capacity: 20 mw/40 mw.
• Technology: Lithium iron phosphate.
• Director: BSES Yamuna Power Limited
• Significantly: This is India’s first grid-connected commercial battery storage project.

5 )Developing Innovation and Technology

• New experiment by NTPC: CO2-based long-duration battery storage.
• Venue: Kudgi, Karnataka
• Objectives: Developing an indigenous long-term energy storage system, apart from conventional lithium batteries in India.