India adds 30GWh to VGF battery storage support scheme, extends transmission charge waivers - Energy-Storage.News
Published February 20, 2026
India Expands VGF Battery Storage Support with Additional 30GWh and Extends Transmission Charge Waivers
In a significant move to bolster its renewable energy sector, the Indian government has announced an addition of 30GWh to its Viability Gap Funding (VGF) battery storage support scheme. This initiative aims to enhance energy storage capabilities across the nation, facilitating the integration of renewable energy sources into the grid. Alongside this announcement, the government has also extended waivers on transmission charges for renewable energy projects, further incentivizing investments in clean energy technologies.
The decision to increase the VGF battery storage support scheme comes as part of India’s broader strategy to achieve its renewable energy targets, including the goal of reaching 500GW of non-fossil fuel-based power generation capacity by 2030. The additional 30GWh allocation is expected to provide a significant boost to energy storage projects, which are crucial for managing the intermittent nature of renewable energy sources such as solar and wind.
Details of the VGF Battery Storage Support Scheme
The VGF scheme is designed to bridge the financial gap for battery storage projects, making them more viable for developers and investors. The government provides funding to offset the initial capital costs associated with the deployment of energy storage systems. By increasing the capacity of this scheme by 30GWh, the government aims to attract more private sector participation in the energy storage market.
This expansion is particularly timely, as energy storage technologies are becoming increasingly vital in the transition to a more sustainable energy system. By allowing for the storage of excess energy generated during peak production times, these systems can help ensure a stable and reliable energy supply, even when renewable generation is low.
Implications of Extended Transmission Charge Waivers
In addition to the VGF expansion, the extension of transmission charge waivers is another critical aspect of the government’s strategy to promote renewable energy. Previously, renewable energy projects benefitted from these waivers, which significantly reduced the overall cost of energy generation and improved the financial viability of such projects.
By continuing to waive transmission charges, the government is providing a clearer pathway for developers to bring new renewable energy projects online. This move is expected to spur further investments in the sector, as it reduces the financial burden associated with energy transmission, which can often be a significant cost factor for project developers.
Government's Commitment to Renewable Energy
The Indian government’s actions reflect its commitment to not only increase the share of renewable energy in the country’s energy mix but also to create an enabling environment for investments in this sector. With the global shift towards sustainable energy solutions, India’s initiatives are aligned with international efforts to combat climate change and promote clean energy technologies.
As part of its renewable energy roadmap, India has set ambitious targets, including achieving 175GW of renewable energy capacity by 2022 and 450GW by 2030. The expansion of the VGF battery storage scheme and the continuation of transmission charge waivers are essential steps toward realizing these goals.
Impact on the Renewable Energy Market
The added capacity for battery storage and the extended waivers are expected to have a positive impact on the renewable energy market in India. These measures will likely lead to increased competition among developers, driving innovation and the adoption of advanced technologies in energy storage and generation.
Moreover, as the country continues to expand its renewable energy infrastructure, the demand for energy storage solutions will grow. This presents a unique opportunity for both domestic and international companies to invest in India’s energy sector, potentially leading to job creation and economic growth.
Conclusion
India’s decision to add 30GWh to its VGF battery storage support scheme and extend transmission charge waivers marks a pivotal moment in the country’s renewable energy journey. These initiatives are set to enhance the integration of renewable energy sources into the national grid and promote a more sustainable energy future. As the country works towards its ambitious renewable energy targets, the importance of energy storage and supportive policies cannot be overstated.
With these developments, India is not only reinforcing its commitment to renewable energy but also positioning itself as a leader in the global transition towards sustainable energy solutions. The successful implementation of these initiatives will be crucial in determining the future landscape of India’s energy sector.
No comments:
Post a Comment