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.