Construction of a large pumped-storage hydroelectric dam in a mountainous region.
India is preparing to roll out a substantial viability gap funding (VGF) scheme, allocating approximately ₹15,000 crore to bolster its energy storage capabilities. This strategic initiative is designed to support the development of 112 gigawatt-hour (GWh) of energy storage projects across the nation.
The program aims to cover a range of storage solutions, including battery storage systems, pumped storage facilities, and emerging new technology systems. The move is a critical step towards enhancing India’s energy security and ensuring greater stability for its power grid, which is increasingly integrating renewable energy sources.
By providing financial support through VGF, the government intends to de-risk investments in the energy storage sector, making it more attractive for private capital. This policy intervention is expected to accelerate the deployment of essential storage infrastructure needed to manage the intermittency of renewable power generation and meet growing energy demands.
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