In an effort to increase the nation’s capacity for renewable energy, India will provide $452 million in incentives to businesses for the establishment of battery storage facilities, a top minister announced on Wednesday.
India’s ambitious aim to increase its renewable energy production to 500 gigawatts (GW) by 2030 from 178 GW at present depends on the success of battery storage projects. They make it possible to store energy from solar, wind, and other renewable sources so that it can be released when electricity is most required.
Anurag Thakur, the information minister, told reporters that the program will enable storage capacity of 4,000 megawatt hours (MWh), which is expected to be developed by 2030–2031.
Reliance Industries (RELI.NS), Adani Power (ADAN.NS), and JSW Energy (JSWE.NS), three Indian conglomerates, all have ambitions to build sizable battery installations.
The government will offer funds to developers of crucial infrastructure projects that are or may end up being economically unviable as so-called viability gap money, which serves as incentives to offset risks.
According to Thakur, the federal cabinet approved the initiative on Wednesday. He also mentioned that businesses opening manufacturing units will receive incentives of up to 40% of their initial investment.
Nirmala Sitharaman, the finance minister, disclosed the plan in her budget speech on February 1. There are now 37 MWh of battery storage available in India.
