Jaipur: Rajasthan has received approval to set up a 4,000 MWh Battery Energy Storage System (BESS) under the Centre’s Viability Gap Funding (VGF) scheme. The allocation, announced on Tuesday, comes with central assistance of Rs 720 crore, calculated at Rs 18 lakh per MWh.
The funding is part of a broader initiative by the Union Ministry of Power to support 30 GWh of battery storage capacity nationwide. Of this, 25 GWh has been allocated to 15 states, including Rajasthan, while 5 GWh has been earmarked for NTPC. The financial support is being provided through the Power System Development Fund (PSDF).
The initiative is aimed at supporting grid-scale storage infrastructure that can help manage energy supply from renewable sources such as solar and wind. According to the state government, the BESS projects will allow surplus renewable power to be stored and supplied during peak hours or when solar generation is low. This is expected to reduce variability, support grid stability, and ensure a more reliable power supply.
Chief Minister Bhajan Lal Sharma stated that the state will submit a time-bound proposal to initiate BESS development. He also noted that the request for additional BESS capacity had been formally communicated to the Union Power Ministry and raised at the NITI Aayog’s Governing Council meeting.
The Rajasthan government has been focusing on expanding its renewable energy infrastructure, and this central allocation is likely to support that goal. However, implementation will depend on timely planning and adherence to the procedural guidelines outlined by the Centre.
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