Union Cabinet approves ₹14,500 crore Viability Gap Funding scheme for large‑scale energy storage
Summary
- Cabinet cleared a ₹14,500 crore Viability Gap Funding (VGF) programme to promote large‑scale energy storage in India.
- The scheme will fund hydro pumped storage plants (PSPs), battery energy storage systems (BESS) and other emerging storage technologies.
- Funding will be provided as viability gap support to bridge the cost‑revenue gap of projects, encouraging private investment.
- The programme aims to enhance grid flexibility and facilitate higher renewable energy penetration.
- Implementation will be coordinated by the Ministry of Power and the Ministry of New and Renewable Energy.
Key Facts
- · Total VGF outlay: ₹14,500 crore.
- · Targeted technologies: PSP, BESS, alternative storage.
- · Scheme administered by: Ministry of Power & MNRE.
- · Objective: Bridge cost‑revenue gap for storage projects.
- · Expected impact: Strengthen grid stability and renewable integration.
Why it matters
Large‑scale storage is critical for balancing intermittent renewable generation, reducing curtailment, and achieving India’s 450 GW renewable target, while the VGF scheme mobilises private capital for costly infrastructure.
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