The Indian government is actively promoting the Battery Energy Storage System to achieve the country’s renewable energy targets and effectively manage peak power demands. This initiative aims to establish large-scale storage capabilities, supporting India’s net-zero target by ensuring energy security.
Battery storage plays a crucial role in harnessing and efficiently utilizing renewable energy. It offers solutions to the variability of renewable sources, ensuring a stable energy supply even during non-generation hours.
The BESS scheme entails a significant financial outlay, featuring targeted Viability Gap Funding (VGF) to stimulate private sector participation. The ultimate goal is to develop substantial storage capacity by the fiscal year 2030-31.
This scheme aims to make stored energy economically viable, specifying costs per kilowatt-hour and laying out plans for phased disbursement of VGF.
To enhance grid stability, the scheme mandates that a minimum percentage of project capacity must be available during peak demand periods, contributing to a balanced energy supply.
The initiative will bolster the growing share of renewable energy within India’s overall energy capacity, addressing challenges related to supply consistency.
Several large-scale energy storage projects are on the horizon, which will play a vital role in facilitating India’s clean energy transition and ensuring the stability of the national grid.
Q1. What is the main purpose of the Battery Energy Storage System Scheme in India?
Answer: The primary purpose of the BESS scheme is to meet renewable energy targets, manage peak power demands, and ensure energy security in India.
Q2. How does battery storage support renewable energy?
Answer: Battery storage helps in harnessing renewable energy efficiently by providing a consistent energy supply even when generation is low, thus stabilizing the grid.
Q3. What is Viability Gap Funding in the context of BESS?
Answer: Viability Gap Funding (VGF) is a financial mechanism aimed at encouraging private sector involvement in the BESS scheme by covering part of the project costs.
Q4. When does India aim to achieve substantial storage capacity through this scheme?
Answer: India aims to develop a significant amount of storage capacity by the fiscal year 2030-31 under the BESS scheme.
Q5. What are the benefits of having a minimum project capacity during peak demand?
Answer: Maintaining a minimum project capacity during peak demand helps ensure grid stability and a reliable energy supply during high usage times.
Question 1: What is the primary goal of the Battery Energy Storage System Scheme in India?
A) To reduce carbon emissions
B) To manage peak power demands
C) To increase fossil fuel usage
D) To decrease renewable energy production
Correct Answer: B
Question 2: What does Viability Gap Funding (VGF) aim to do in the BESS scheme?
A) Increase energy prices
B) Encourage private sector participation
C) Limit renewable energy projects
D) Reduce storage capacity
Correct Answer: B
Question 3: By what year does India plan to develop substantial storage capacity?
A) 2025-26
B) 2030-31
C) 2027-28
D) 2035-36
Correct Answer: B
Question 4: How does battery storage enhance grid stability?
A) By increasing fossil fuel use
B) By providing energy only during peak hours
C) By ensuring energy supply during non-generation hours
D) By reducing renewable energy sources
Correct Answer: C
Question 5: What is a key benefit of maintaining minimum project capacity during peak times?
A) Reducing energy costs
B) Enhancing grid stability
C) Increasing energy waste
D) Limiting energy supply
Correct Answer: B
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