What are the benefits of Battery Energy Storage Systems and how does the approval of VGF by the Union Cabinet contribute to their implementation

The benefits of Battery Energy Storage Systems (BESS) are:

• Flexibility and Grid Stability: BESS can provide stability to the electrical grid by storing excess energy during low demand and releasing it during peak demand, thereby reducing strain on the system.
• Integration of Renewable Energy: BESS can store excess electricity generated by renewable energy sources like solar or wind, enabling a more reliable integration of these intermittent power sources into the grid.
• Backup Power Supply: BESS can provide backup power during grid outages, ensuring continuity of essential services.
• Peak Shaving and Demand Management: By storing energy during periods of low demand and discharging it during peak periods, BESS can reduce peak electricity usage, helping to lower electricity costs.
• Reduced Transmission and Distribution Losses: BESS, when strategically placed, can store and release electricity near the point of consumption, reducing transmission and distribution losses.

The approval of Viability Gap Funding (VGF) by the Union Cabinet is a significant step towards encouraging the implementation of BESS. VGF will help in bridging the financial viability gap involved in the deployment of BESS projects, making them more financially attractive for investors. This approval will incentivize private sector participation and contribute to accelerated deployment of BESS in the country, strengthening the power sector, enhancing grid stability, and promoting renewable energy integration.