{"id":272878,"date":"2026-01-31T01:00:11","date_gmt":"2026-01-31T01:00:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/272878\/"},"modified":"2026-01-31T01:00:11","modified_gmt":"2026-01-31T01:00:11","slug":"new-viability-gap-funding-in-the-works-for-energy-storage","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/272878\/","title":{"rendered":"New viability gap funding in the works for energy storage"},"content":{"rendered":"

The government is working on a new viability gap funding<\/a> scheme for energy storage<\/a> to give a push to the much-needed projects for grid stability<\/a> and to accelerate renewable energy adoption<\/a>, people in the know said.<\/p>\n

A concept note on VGF Scheme proposal for pumped storage projects<\/a> (PSPs) and battery energy storage systems<\/a> (BESS) has been sent by the power ministry to the Department of Expenditure for approval, as per the people.
While a VGF scheme for battery storage is under implementation, the new one aims to kick start large-scale adoption by stakeholders amid variability in grid.<\/p>\n

The earlier VGF scheme was launched in two tranches supporting 13.2 GWh with 30% capital expenditure support and thereafter 30 GWh with 16%. While the first VGF is completely tendered, the second one is in progress, one of the persons said.<\/p>\n

These, however, did not have a PSP component.<\/p>\n

\"ETLive Events
“Storage needs to be given a boost because of the growing need for the power system,” an industry official said. The power ministry did not respond to ET’s email query till press time.
As per the Central Electricity Authority (CEA), the requirement of storage capacity is projected at 290 GWh by 2029-30 and 450 GWh by 2031-32.Energy storage systems are needed as renewable energy use rises, and the grid faces pressure during morning and evening peak hours, when solar and wind generation is limited.<\/p>\n

By storing surplus power and supplying it during peak hours, storage helps balance supply, supports reliable grid operations and reduces the need for additional dispatchable power.<\/p>\n

The storage requirement can be met either through hydro PSP or BESS or a combination of both, according to the power planning body. BESS is suitable for short duration storage while PSPs are suitable for long duration, it says.<\/p>\n

While India has been adding battery energy storage, it is also betting big on hydro pumped storage projects, which have a unique advantage of availability in the domestic conditions.<\/p>\n

According to a recent report from the CEA, there is an ever- increasing demand for energy storage assets. PSPs, also known as ‘water battery’, are best suited for addressing this demand.<\/p>\n

Globally, PSPs account for over 95% of installed energy storage capacity<\/a>, storing nearly 9,000 GWh of electricity.<\/p>\n","protected":false},"excerpt":{"rendered":"The government is working on a new viability gap funding scheme for energy storage to give a push…\n","protected":false},"author":2,"featured_media":272879,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[133252,72,113,19813,133251,83288,61,60,133250,133249,133248],"class_list":{"0":"post-272878","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-battery-energy-storage-systems","9":"tag-business","10":"tag-economy","11":"tag-energy-storage","12":"tag-energy-storage-capacity","13":"tag-grid-stability","14":"tag-ie","15":"tag-ireland","16":"tag-pumped-storage-projects","17":"tag-renewable-energy-adoption","18":"tag-viability-gap-funding"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/272878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=272878"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/272878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/272879"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=272878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=272878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=272878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}