India Approves ₹3,760 crore Viability Gap Funding for Battery Energy Storage Systems

The Government of India has launched a Viability Gap Funding (VGF) scheme to support large‑scale Battery Energy Storage Systems (BESS). In March 2024 the programme allocated ₹3,760 crore to fund 13,220 MWh of storage, providing a grant of ₹27 lakh per MWh. The funding aims to bridge the financial gap for projects that are essential for grid reliability and renewable integration but lack commercial viability without support.

India’s Central Electricity Authority projects a need for 60.63 GW of energy storage capacity by 2029‑30, with 41.65 GW expected from BESS. The VGF scheme complements other measures such as a national framework for storage, a 100 % waiver of inter‑state transmission charges, and incentives for peak‑power and firm dispatchable renewable energy. By reducing project costs, the scheme is intended to attract private investment and accelerate the deployment of battery storage across the country.