The Indian government's initiative aims to reach a remarkable 4GWh Battery Energy Storage System (BESS) capacity by the fiscal year 2030-31. To support this ambitious plan, a funding allocation of Rs.3,760 crore has been proposed as viability gap funding for developers. Additionally, an incentive of Rs.18,100 crore is set aside for production-linked incentives specifically targeting advanced cell chemistry battery manufacturing.
On a global scale, the energy storage market is witnessing significant investments. In 2022 alone, approximately $5 billion was invested, with projections indicating a growth potential to a $150 billion market by 2030. Concurrently, the price of lithium-ion batteries is on a downward trajectory, enhancing the viability of BESS solutions.
Currently, India is starting with a capacity of 37MWh and has set an ambitious target to exceed 200GWh to fulfill renewable energy objectives. Major firms are showing interest in this sector, buoyed by a positive outlook from the International Energy Agency.
A Battery Energy Storage System (BESS) functions by storing energy generated from renewable sources and releasing it when necessary, thus facilitating efficient energy management. The technology primarily utilizes lithium-ion batteries, which are favored for their high energy density and the decreasing costs associated with them.
The importance of BESS cannot be overstated. It plays a pivotal role in maintaining grid stability by managing the intermittent nature of renewable energy sources. Moreover, it is essential for achieving climate goals, particularly in reducing reliance on fossil fuels and fulfilling the objectives set by the Paris Agreement.
This overview provides a clear understanding of the plans, current status, and significance of BESS in both the Indian and global contexts, highlighting its crucial role in furthering green energy initiatives and mitigating energy waste while enhancing grid stability.
Kutos : AI Assistant!
