The Union Cabinet on Wednesday, November 4 approved 145 billion rupees ($1.53 billion) for a programme aimed at developing energy storage projects in the country, Information Minister Ashwini Vaishnaw said, Reuters reported.

Source: Reuters via Devdiscourse

The approval came at a Cabinet meeting that was scheduled to take up two major energy schemes, according to a memo seen by The Hindu and reported earlier on Wednesday: capital expenditure support for critical mineral processing, and a viability gap funding (VGF) scheme for the development of a grid-scale storage system. Reuters' report of the storage approval matches the second of those two agenda items; the detailed contours of the scheme were not specified in the memo.

Source: The Hindu via EuropeSays

Why grid-scale storage matters

Grid-scale energy storage systems are deployed at transmission and distribution level for greater grid stability: they absorb excess electricity when supply exceeds demand and discharge it during peak hours or when necessary, The Hindu's report explained. As solar and wind generation grows, storage is what lets renewable power generated during the day be used after sunset and during evening demand peaks.

Source: The Hindu via EuropeSays

The storage push builds on earlier steps. The Ministry of Heavy Industries is already implementing a production-linked incentive (PLI) scheme for 50 GWh of advanced chemistry cell manufacturing capacity, of which 10 GWh would account for grid-scale stationary storage, The Hindu noted. An earlier Cabinet-approved VGF scheme for Battery Energy Storage Systems envisaged 4,000 MWh of BESS projects by 2030-31 with budgetary support of Rs 3,760 crore, according to the Press Information Bureau.

Source: Press Information Bureau

What happens next: the full official release with the new programme's capacity targets, funding structure and implementation timeline is awaited. Awaaz Punjab will update this story when the Press Information Bureau publishes the detailed Cabinet note.

Source: Reuters via Devdiscourse