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India’s largest Battery Energy Storage System (BESS)

Why is it in the news?

  • SECI (Solar Energy Corporation of India) has commissioned India’s largest Battery Energy Storage System (BESS) in Rajnandgaon, Chhattisgarh, with a capacity of 40 MW/120 MWh.

About BESS

  • BESS stores solar energy during peak generation hours and releases it during periods of high demand, enhancing grid stability and facilitating renewable energy integration.
  • Funded by the World Bank and Clean Technology Fund (CTF) under the Innovation in Solar Power & Hybrid Technologies (ISP&HT) Project.
  • BESS operates as an electrochemical device, collecting energy from the grid or power plants and discharging it when needed to provide electricity or other grid services.
  • It improves grid stability, reduces peak deficits, helps meet Renewable Purchase Obligations (mandated percentage of electricity from renewables), and lowers carbon emissions.

Initiatives to Promote BESS

  • BESS participation in the High Price Day Ahead Market (HP-DAM) segment of the Energy Exchange is permitted, allowing BESS operators to capitalize on high electricity prices during peak demand periods.
  • The Viability Gap Funding (VGF) scheme is introduced to support the development of 4,000 MWh of BESS projects by 2030-31, incentivizing investments in energy storage infrastructure.
  • Inter-State Transmission Charges on BESS Projects commissioned up to July 2025 are waived, reducing financial barriers and encouraging the deployment of BESS technologies across different states in India.
  • A National programme on Advanced Chemistry Cell (ACC) battery storage for Gigascale is established, aiming to foster research, development, and deployment of advanced battery technologies for large-scale energy storage applications.
  • Bidding Guidelines for BESS are formulated to streamline the procurement process and ensure transparency, efficiency, and fair competition among potential developers and operators of BESS projects.
Additional Information

·       Clean Technology Fund (CTF): Proposed in 2008, CTF aims to finance scaled-up deployment of low-carbon technologies in developing countries, with the World Bank serving as Trustee.

·       ISP&HT Project: The project aims to demonstrate the feasibility of utility-scale innovative renewable energy technologies and BESS, contributing to India’s sustainable energy transition.


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