Government Increases BESS Target to 14,000 MWh Amid Falling Prices
POWER & RENEWABLE ENERGY

Government Increases BESS Target to 14,000 MWh Amid Falling Prices

The Ministry of Power (MoP) has raised the Battery Energy Storage System (BESS) capacity target under the Viability Gap Funding (VGF) program from 4,000 MWh to 13,200 MWh, citing a decline in storage costs. All states and implementing agencies have been directed to award BESS contracts by June 2025, ensuring program completion by May 2027.

The expanded target includes allocations under three components:

  • Market Component: NTPC Vidyut Vyapar Nigam (NVVN) has been allocated 1,000 MWh under the first tranche, with a VGF of Rs 4.6 million/MWh. SECI will manage an additional 1,200 MWh under Market Mechanism Tranche-II, with a VGF of Rs 2.7 million/MWh.
  • State Component: 6,000 MWh has been allocated to Rajasthan, Tamil Nadu, Karnataka, Gujarat, Maharashtra, Telangana, Bihar, and Kerala, with a VGF of Rs 2.7 million (~$31,150)/MWh.
  • Central PSU Component: 5,000 MWh has been assigned to NVVN, NHPC, and SJVN, also with a VGF of Rs 2.7 million/MWh.
  • Bidding for 500 MW/1,000 MWh under Tranche-I was completed in October 2024, and NVVN signed the Battery Energy Storage Purchase Agreement in December. Under the State Component, awards have been issued for 2,500 MWh, covering 1,000 MWh in Gujarat, 500 MWh in Maharashtra, and 1,000 MWh in Rajasthan.

    Initially, the VGF program aimed to support at least 4,000 MWh of BESS by 2028 with a capital subsidy of Rs 37.6 billion. Approved in September 2023 with a total allocation of Rs 94 billion, the program's operational guidelines were released in March 2024. VGF disbursement follows a structured five-tranche model, with 10% at financial closure, 45% at the commercial operation date (COD), and the remaining 45% distributed over three years post-COD.

    (MERCOM)

    The Ministry of Power (MoP) has raised the Battery Energy Storage System (BESS) capacity target under the Viability Gap Funding (VGF) program from 4,000 MWh to 13,200 MWh, citing a decline in storage costs. All states and implementing agencies have been directed to award BESS contracts by June 2025, ensuring program completion by May 2027. The expanded target includes allocations under three components: Market Component: NTPC Vidyut Vyapar Nigam (NVVN) has been allocated 1,000 MWh under the first tranche, with a VGF of Rs 4.6 million/MWh. SECI will manage an additional 1,200 MWh under Market Mechanism Tranche-II, with a VGF of Rs 2.7 million/MWh. State Component: 6,000 MWh has been allocated to Rajasthan, Tamil Nadu, Karnataka, Gujarat, Maharashtra, Telangana, Bihar, and Kerala, with a VGF of Rs 2.7 million (~$31,150)/MWh. Central PSU Component: 5,000 MWh has been assigned to NVVN, NHPC, and SJVN, also with a VGF of Rs 2.7 million/MWh. Bidding for 500 MW/1,000 MWh under Tranche-I was completed in October 2024, and NVVN signed the Battery Energy Storage Purchase Agreement in December. Under the State Component, awards have been issued for 2,500 MWh, covering 1,000 MWh in Gujarat, 500 MWh in Maharashtra, and 1,000 MWh in Rajasthan. Initially, the VGF program aimed to support at least 4,000 MWh of BESS by 2028 with a capital subsidy of Rs 37.6 billion. Approved in September 2023 with a total allocation of Rs 94 billion, the program's operational guidelines were released in March 2024. VGF disbursement follows a structured five-tranche model, with 10% at financial closure, 45% at the commercial operation date (COD), and the remaining 45% distributed over three years post-COD. (MERCOM)

    Next Story
    Equipment

    Handling concrete better

    Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

    Next Story
    Real Estate

    Elevated floors!

    Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

    Next Story
    Infrastructure Urban

    The Variation Challenge

    A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

    Advertisement

    Advertisement

    Subscribe to Our Newsletter

    Get daily newsletters around different themes from Construction world.

    STAY CONNECTED

    Advertisement

    Advertisement

    Advertisement

    Advertisement

    Talk to us?