NEWS: Union Cabinet approved a ₹14,500 crore Viability Gap Funding (VGF) Scheme to develop 92 GWh grid-scale energy storage capacity during FY 2026–27 to FY 2030–31.

ABOUT THE SCHEME

• Aim: Make energy storage commercially viable and ensure grid stability.
• Total outlay: ₹14,500 crore.
• Duration: 5 years.
• Expected investment: ₹97,600 crore.

CAPACITY ALLOCATION

• Pumped Storage Plants (PSP): 60 GWh.
• Battery Energy Storage Systems (BESS): 30 GWh.
• Emerging technologies: 2 GWh.

KEY FEATURES

• VGF Support: Capital grants to bridge project viability gaps.
• Competitive bidding: Transparent tariff-based selection.
• Domestic Content Requirement: Minimum 40% domestic components for VGF-supported BESS projects.
• Beneficiaries: Public and private DISCOMs.
• Implementation: FY 2026–27 to FY 2030–31.