Battery Energy Storage Systems (BESS)
Technology and Policy Framework
A Battery Energy Storage System (BESS) stores electrical energy electrochemically (typically in lithium-ion cells) and releases it on demand. BESS is modular and can be deployed faster than pumped hydro (which requires 4–7 years). Key applications include grid stabilisation, renewable energy time-shifting, frequency regulation, and ancillary services. India's policy support for BESS includes: (1) Viability Gap Funding (VGF) of ₹9,100 crore for 4,000 MW / 16,000 MWh; (2) inter-state transmission charge waiver for BESS co-located with renewable plants commissioned before June 2028; and (3) participation in the High-Price Day-Ahead Market (HP-DAM).
- VGF scheme: ₹9,100 crore (approximately US$ 1.09 billion) for 43.2 GWh of BESS capacity
- Energy Storage Obligations (ESO): utilities must progressively increase storage to 4% of electricity demand by FY 2029-30 (from 1% in FY 2023-24, increasing 0.5% per year)
- HP-DAM launched in March 2023 allows BESS to participate in peak-price electricity markets
- As of Jan 2026: <1 GWh commissioned; 10,658 MW under construction; 22,347 MW in tendering
● Tracked since April 29, 2026 · last seen August 20, 2026 · updates as the daily brief publishes