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MNRE Establishes Strategies for Implementing BESS to Ensure Continuous RE Supply
Discussions revolved around ensuring that BESS can supply electricity during peak demand periods while simultaneously stabilizing the grid.
February 26, 2024. By Abha Rustagi
The Union Minister for Power and New & Renewable Energy, R.K. Singh, chaired a significant meeting in New Delhi, aimed at finalizing the structure for operationalizing the scheme for Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS) with a capacity of 4,000 MWh.
The meeting saw the participation of senior officers from key departments including the Ministry of Power, Ministry of New & Renewable Energy, Central Electricity Authority, Solar Energy Corporation of India, Grid India, and NTPC Vidyut Vyapar Nigam Ltd. (NVVN).
During the session, Minister Singh emphasised the notable reduction in the price of BESS in recent years and underscored the government's commitment to encouraging the establishment of BESS capacity to meet the burgeoning power demand and facilitate the energy transition. He highlighted the looming scenario where surplus solar energy during the day and excess wind energy in the evening could go to waste without adequate storage systems in place to harness and utilize it when needed.
Minister Singh reiterated the government's role in creating enabling structures to attract investment and expressed a desire for the system to provide energy precisely when the nation requires it the most.
Discussions revolved around ensuring that BESS can supply electricity during peak demand periods while simultaneously stabilizing the grid. It was proposed that power be supplied through various market segments in power exchanges, with BESS primarily charged from renewable sources during times of ample solar and wind energy availability.
The meeting also explored various procurement models for BESS, including energy contracts and capacity contracts, weighing their respective advantages and challenges for implementation. Additionally, potential sites in states abundant in renewable energy resources were deliberated upon as optimal locations for BESS deployment, aiming to maximize the benefits of the storage system and bolster the nation's renewable energy infrastructure.
The meeting saw the participation of senior officers from key departments including the Ministry of Power, Ministry of New & Renewable Energy, Central Electricity Authority, Solar Energy Corporation of India, Grid India, and NTPC Vidyut Vyapar Nigam Ltd. (NVVN).
During the session, Minister Singh emphasised the notable reduction in the price of BESS in recent years and underscored the government's commitment to encouraging the establishment of BESS capacity to meet the burgeoning power demand and facilitate the energy transition. He highlighted the looming scenario where surplus solar energy during the day and excess wind energy in the evening could go to waste without adequate storage systems in place to harness and utilize it when needed.
Minister Singh reiterated the government's role in creating enabling structures to attract investment and expressed a desire for the system to provide energy precisely when the nation requires it the most.
Discussions revolved around ensuring that BESS can supply electricity during peak demand periods while simultaneously stabilizing the grid. It was proposed that power be supplied through various market segments in power exchanges, with BESS primarily charged from renewable sources during times of ample solar and wind energy availability.
The meeting also explored various procurement models for BESS, including energy contracts and capacity contracts, weighing their respective advantages and challenges for implementation. Additionally, potential sites in states abundant in renewable energy resources were deliberated upon as optimal locations for BESS deployment, aiming to maximize the benefits of the storage system and bolster the nation's renewable energy infrastructure.
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