Lok Sabha Question No. 1914 (UNSTARRED), answered on 2025-07-31
Subject: Scaling up of Battery Energy Storage System
Ministry: POWER
Asked by: Ms. S Jothimani

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1914 ANSWERED ON 31.07.2025

## SCALING UP OF BATTERY ENERGY STORAGE SYSTEM

1914.  MS. S JOTHIMANI:

Will the Minister of POWER be pleased to state:

(a) the roadmap of the Government for the deployment and scaling up of Battery Energy Storage  Systems  (BESS)  to  support  grid  stability  and  facilitate  the  integration  of  variable renewable energy;

(b) the anticipated role of energy storage infrastructure in enabling India to achieve its target  of  500GW  of  non-fossil  fuel-based  capacity  by  2030  particularly  in  high  renewable potential States like Tamil Nadu;

(c) whether the Government is undertaking efforts to modernize grid infrastructure and streamline  Power  Purchase  Agreements  (PPAs)  with  Distribution  Companies  (DISCOMs)  to address delays and risks in renewable energy procurement especially in the southern grid and if so, the key initiatives underway; and

(d) the steps being taken by the Government to strengthen decentralized renewable energy sources such as rooftop solar, small wind and hybrid systems in rural and peri-urban areas of Tamil  Nadu  and  other  southern  States  including  integration  with  ongoing  DISCOM  reform measures?

A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) :   Central Electricity Authority (CEA) has estimated 41.6 GW / 208 GWh Battery Energy Storage System (BESS) capacity up to FY 2029-30.  To support the development of BESS, Government has undertaken several key policy initiatives:

- i) A  Viability  Gap  Funding  (VGF)  scheme,  approved  in  2023,  initially  aimed  to  support 4,000 MWh of BESS capacity by FY 2030-31 with a budgetary allocation of ₹3,760 crore. With falling battery costs, the target capacity has now been increased to 13,220 MWh while remaining within the same budget.
2. ii) A second VGF scheme has been approved by the Ministry of Power to develop 30 GWh of  BESS  capacity,  with  a  financial  support  of  ₹5,400  crore  from  the  Power  System Development Fund (PSDF).
3. iii) Full waiver of Inter-State Transmission System (ISTS) charges has been granted for colocated BESS projects commissioned up to 30th June, 2028.

……..2.

(b) : Energy Storage Systems (ESS), including BESS and Pumped Storage Projects (PSPs), will play a critical role in achieving India's target of 500 GW of non-fossil fuel-based capacity by 2030, especially in renewable-rich states like Tamil Nadu.  ESS enables storage of surplus power generated during periods of high wind and solar output, which can then be dispatched during  peak  demand.    ESS  can  be  deployed  across  the  generation,  transmission,  and distribution  segments  of  the  power  system.    This  improves  grid  flexibility,  enhances  the utilisation of transmission  infrastructure,  and  reduces  renewable  energy  curtailment. Furthermore, ESS supports Load Dispatch Centres (LDCs) in delivering ancillary services, such as frequency regulation and voltage control, thereby strengthening overall grid reliability.

(c) : To modernise the transmission system, the Ministry of Power constituted a Task Force, which recommended a comprehensive roadmap for creating a smart and future-ready grid. Key measures  include  re-powering  of  existing  transmission  lines,  deployment  of  Flexible  AC Transmission Systems (FACTS), and adoption of Dynamic Line Loading (DLL) to optimise power flow  based  on  real-time  conditions.  The  Task  Force  also  proposed  installation  of  energy storage systems to improve  transmission system  utilisation  and  resilience,  upgradation  of protection  and  control  systems,  and  conversion  of  aging  substations  into  Gas  Insulated Switchgear  (GIS)  or  hybrid  substations.  Implementation  of  several  recommendations  is already in progress.

The Ministry has issued Standard Bidding Guidelines for procurement of power from grid-connected  renewable  energy  projects  to  promote  transparency,  enhance  competition, and accelerate the deployment of clean energy.  Letters of Award (LoAs) issued by REIAs to successful bidders will remain valid for only one year. If Distribution Licensees do not enter into PPAs with the Renewable Energy Implementation Agency (REIA) within this period, the corresponding LoAs will be deemed cancelled.  To fast-track the signing of Power Purchase Agreements  (PPAs),  REIAs  have  been  advised  to  aggregate  demand  from  Distribution Licensees before inviting bids.

(d) : Under the PM Surya Ghar Muft Bijli Yojana DISCOMS are promoting roof top solar. The feeder-level integration of small Renewable Energy (RE) plants is being implemented under the PM-KUSUM scheme.

To further streamline rooftop solar deployment, the Electricity (Rights of Consumers) Rules,  2020  were  amended  in  February  2024  to  simplify  procedures  and  improve  ease  of installation for prosumers.  Key amendments include:

-  Exemption from technical feasibility study for systems up to 10 kW capacity.
-  The technical feasibility study shall be completed within a period of fifteen days and the outcome of the study shall be intimated to the applicant, failing which it shall be presumed that the proposal is technically feasible.
-  The cost of distribution system strengthening for rooftop systems up to 5 kW will be borne by the distribution licensee.
-  The timeline for commissioning rooftop solar PV systems by DISCOMs has been reduced from 30 days to 15 days.

These  measures  are  expected  to  accelerate  rooftop  solar  adoption  and  enhance consumer participation in decentralized renewable energy generation in rural and peri-urban areas of Tamil Nadu and other southern States.

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