{"id":132148,"date":"2026-11-05T13:16:34","date_gmt":"2026-11-05T07:46:34","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=132148"},"modified":"2026-11-05T13:22:36","modified_gmt":"2026-11-05T07:52:36","slug":"viability-gap-funding-scheme-for-grid-scale-energy-storage-systems","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/viability-gap-funding-scheme-for-grid-scale-energy-storage-systems\/","title":{"rendered":"Cabinet Approves \u20b914,500 Crore Viability Gap Funding Scheme for 92 GWh Energy Storage"},"content":{"rendered":"<h2><b>Viability Gap Funding Scheme for Grid-Scale Energy Storage Systems Latest News\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Union Cabinet has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore.<\/span><\/p>\n<h2><b>About Viability Gap Funding Scheme for Grid-Scale Energy Storage Systems\u00a0<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme aims to <\/span><b>support the development of 92 GWh<\/b><span style=\"font-weight: 400;\"> of energy storage capacity across the country.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Objective:<\/b><span style=\"font-weight: 400;\"> To strengthen India&#8217;s <\/span><b>domestic energy storage manufacturing ecosystem<\/b><span style=\"font-weight: 400;\"> through demand-side financial support and reduce dependence on imported components.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme envisages the development of<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>60 GWh of Hydro Pumped Storage Plant<\/b><span style=\"font-weight: 400;\"> (PSP)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>30 GWh of Battery Energy Storage System<\/b><span style=\"font-weight: 400;\"> (BESS)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>2 GWh of capacity<\/b><span style=\"font-weight: 400;\"> through alternative energy storage technologies<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Time Period:<\/b><span style=\"font-weight: 400;\"> FY 2026-27 to FY 2030-31.<\/span><\/li>\n<\/ul>\n<h2><b>Features of Viability Gap Funding Scheme for Grid-Scale Energy Storage Systems<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Allocation Method:<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Energy storage capacity will be allocated through a <\/span><b>tariff-based competitive bidding process.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Public and private sector electricity distribution companies will be eligible for VGF support for BESS and Hydro PSP projects.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Projects based on <\/span><b>alternative energy storage<\/b><span style=\"font-weight: 400;\"> technologies will be <\/span><b>implemented by public and private sector entities.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Domestic Content Requirement (DCR):<\/b><span style=\"font-weight: 400;\"> To promote indigenous manufacturing, BESS projects will be subject to a minimum <\/span><b>Domestic Content Requirement (DCR) of 40%.<\/b><\/li>\n<\/ul>\n<h2><b>Significance Viability Gap Funding Scheme for Grid-Scale Energy Storage Systems<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It will <\/span><b>strengthen India&#8217;s power sector infrastructure<\/b><span style=\"font-weight: 400;\">, facilitating large-scale integration of renewable energy and ensuring reliable, affordable and round-the-clock power supply.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It will also provide an impetus to <\/span><b>domestic manufacturing of battery energy storage<\/b><span style=\"font-weight: 400;\"> systems, <\/span><b>reduce import dependence<\/b><span style=\"font-weight: 400;\"> and enhance the country&#8217;s long-term energy security.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The VGF support will help improve the financial viability of these projects.<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.pib.gov.in\/PressReleaseDetail.aspx?PRID=2332474&amp;reg=48&amp;lang=1\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet has approved a \u20b914,500 crore Viability Gap Funding Scheme to develop 92 GWh of grid-scale energy storage, including pumped hydro, batteries and alternative technologies.<\/p>\n","protected":false},"author":24,"featured_media":132161,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[11373],"class_list":["post-132148","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-viability-gap-funding-scheme-for-grid-scale-energy-storage-systems","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=132148"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132148\/revisions"}],"predecessor-version":[{"id":132173,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132148\/revisions\/132173"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/132161"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=132148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=132148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=132148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}