New delhi energy storage power station subsidy

Will India's first battery energy storage system be regulated in 2024?

New Delhi | 08 May 2024 — In a significant step forward for India’s energy transition, the Delhi Electricity Regulatory Commission (DERC) has granted regulatory approval of India’s first commercial standalone Battery Energy Storage System (BESS) project.

How will a new battery energy storage scheme affect the economy?

The scheme will cut the cost of battery energy storage from the current range of INR 5.5-6.5 per unit. It will also foster the development of large-scale battery energy storage systems by encouraging competitive bidding to drive down costs.

Is India preparing a new multibillion-dollar subsidy scheme?

India’s government is preparing a new multibillion-dollar subsidy scheme for companies making electricity grid batteries, according to a proposal seen by the Financial Times, as authorities try to accelerate the large coal consumer’s transition to clean energy.

Should India phase out coal?

India has resisted pressure to phase out coal but officials say bringing down the costs of battery storage is an essential alternative to building new coal-power plants. The draft plan acknowledged there was a limit to how much more coal power India could build.

Is battery demand growing in India?

Jagabanta Ningthoujam, a principal at think-tank RMI’s India practice, said that while the cost of batteries for the grid was at present “prohibitive”, the market had enormous growth potential. “There’s a universal consensus that you need growth of battery demand,” he said.

What is a production-linked incentive subsidy scheme?

The draft proposal for a production-linked incentive subsidy scheme would offer Rs216bn ($2.6bn) from this year through to 2030 for companies to set up manufacturing capacity for 50 gigawatt hours’ worth of battery cells in India. The plan, submitted by India’s power ministry, is under discussion and subject to change.