IFC, a member of the World Bank Group, has committed Rs 4.60 billion to IndiGrid for the development of India’s largest standalone battery energy storage system (BESS) project in Gujarat. The project is expected to significantly contribute to the state's clean energy ambitions by enhancing grid stability and ensuring dependable power supply during peak demand periods.

The financing involves a long-term investment of approximately Rs 4.60 billion through a subscription to listed non-convertible debentures. This includes 38.5 million from IFC’s own account and $16.5 million in concessional support from the Clean Technology Fund, which operates under the World Bank-hosted Climate Investment Funds framework.

The initiative aims to improve access to reliable and affordable electricity, which is central to development goals in emerging markets. Battery energy storage is being recognised as essential for diversifying India's energy portfolio and ensuring the availability of clean power during high-demand periods.

IndiGrid has previously collaborated with IFC on sustainable and inclusive infrastructure projects in India. The current investment aligns with Gujarat’s target of achieving 100 GW of renewable capacity by 2030 and offers a scalable model for other states to follow.

India’s power sector is currently undergoing a significant transformation as the country progresses toward its national target of 500 GW of clean energy capacity by 2030. The integration of solar and wind power into the grid presents challenges related to stability, peak load handling, and dispatch reliability.

Utility-scale battery storage is increasingly viewed as a critical tool for addressing these issues, enabling smoother integration of renewable energy sources. The new BESS project in Gujarat is seen as a strategic step towards building future-ready, clean, and resilient energy infrastructure.

News source: Money Rediff