{"id":375100,"date":"2026-11-05T15:43:25","date_gmt":"2026-11-05T10:13:25","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=375100"},"modified":"2026-11-05T15:43:25","modified_gmt":"2026-11-05T10:13:25","slug":"viability-gap-funding-vgf-scheme-to-promote-grid-scale-energy-storage-systems","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/viability-gap-funding-vgf-scheme-to-promote-grid-scale-energy-storage-systems\/","title":{"rendered":"Viability Gap Funding (VGF) Scheme to Promote Grid-Scale Energy Storage Systems"},"content":{"rendered":"<div class=\"content-box-green\" style=\"text-align: justify;\"><strong>News:<\/strong> The Union Cabinet approved a \u20b914,500 crore Viability Gap Funding (VGF) Scheme to promote Grid-Scale energy storage systems.<\/div>\n<h2 class=\"red-h2-box\" style=\"text-align: justify;\">About Viability Gap Funding (VGF) Scheme to Promote Grid-Scale Energy Storage Systems<\/h2>\n<figure style=\"width: 358px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/HWSMaZ1aQAA4Dwt?format=webp&amp;name=large\" alt=\"Viability Gap Funding (VGF) Scheme to promote grid-scale energy storage systems\" width=\"358\" height=\"447\" \/><figcaption class=\"wp-caption-text\">Source: Ministry of Information and Broadcasting<\/figcaption><\/figure>\n<ul>\n<li style=\"text-align: justify;\" data-pm-slice=\"1 1 []\"><strong>Viability Gap Funding (VGF) Scheme<\/strong> has been launched<strong> to support the development of 92 Gigawatt-hours (GWh) of grid-scale energy storage capacity across the country,<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Aim: <\/strong>The scheme aims<strong> to strengthen India\u2019s power infrastructure, facilitate large-scale integration of renewable energy and ensure reliable, affordable<\/strong> and<strong> round-the-clock electricity supply.<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Objective:<\/strong> It is<strong> to strengthen India&#8217;s domestic energy storage manufacturing ecosystem<\/strong> through <strong>demand-side financial support and reduce dependence on imported components.<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Nodal ministry:<\/strong> The nodal ministry for the scheme is <strong class=\"rQesXe MPyX\" data-sfc-cp=\"\" data-sfc-root=\"c\" data-complete=\"true\">Ministry of Power<\/strong><\/li>\n<li><span class=\"iNqyIf\" data-sfc-cp=\"\" data-sfc-root=\"c\" data-complete=\"true\"><strong class=\"rQesXe MPyX\" data-sfc-cp=\"\" data-sfc-root=\"c\" data-complete=\"true\"><span class=\"yADgie\">Time Period:<\/span><\/strong><span class=\"yADgie\"> The scheme will be implemented over a period of <strong>five financial years, from FY 2026\u201327 to FY 2030\u201331.<\/strong><\/span><\/span><\/li>\n<li style=\"text-align: justify;\" data-pm-slice=\"1 1 []\"><strong>Budget:<\/strong> The total budget for the scheme is <strong>\u20b914,500 crore.<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Eligibility: Public and private sector electricity distribution companies<\/strong> will be eligible for VGF support for battery energy storage and pumped storage projects.\n<ul>\n<li>Energy storage capacity will be allocated <strong>through a tariff-based competitive bidding process.<\/strong><\/li>\n<li><strong>Projects based on alternative storage technologies<\/strong> will also be <strong>implemented by public and private sector entities.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><strong>Features:<\/strong>\n<ul>\n<li>A key feature of the scheme is i<strong>ts focus on strengthening domestic manufacturing<\/strong>.\n<ul>\n<li>Battery Energy Storage System projects will be subject to a <strong>minimum Domestic Content Requirement (DCR) of 40 per cent<\/strong> to encourage indigenous production and reduce dependence on imported components.<\/li>\n<li>The requirement is expected<strong> to create opportunities for Indian manufacturers and complement existing government incentives<\/strong> for battery manufacturing.<\/li>\n<\/ul>\n<\/li>\n<li>Under the initiative, <strong>the government will support the development of 60 GWh of Hydro Pumped Storage Projects (PSPs), 30 GWh of Battery Energy Storage Systems (BESS) and 2 GWh of capacity<\/strong> through emerging energy storage technologies.\n<ul>\n<li>The <strong>proposed capacity addition will be equivalent to around 170 per cent of India\u2019s existing grid-scale energy storage capacity<\/strong> and c<strong>ontribute towards meeting the country\u2019s estimated requirement of 411 GWh by 2031-32.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial assistance:<\/strong> The financial assistance under the <strong>scheme is intended to improve the financial viability of energy storage projects<\/strong> and accelerate the deployment of large-scale storage infrastructure.<\/li>\n<li><strong>Expected Investment:<\/strong> The projects are <strong>expected to attract an estimated investment of \u20b997,600 crore.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\">The initiative would help address the variability of renewable energy generation by <strong>enabling better storage and utilisation of electricity generated from renewable sources.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Union Cabinet approved a \u20b914,500 crore Viability Gap Funding (VGF) Scheme to promote Grid-Scale energy storage systems. About Viability Gap Funding (VGF) Scheme to Promote Grid-Scale Energy Storage Systems Viability Gap Funding (VGF) Scheme has been launched to support the development of 92 Gigawatt-hours (GWh) of grid-scale energy storage capacity across the country,&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/viability-gap-funding-vgf-scheme-to-promote-grid-scale-energy-storage-systems\/\">Continue reading <span class=\"screen-reader-text\">Viability Gap Funding (VGF) Scheme to Promote Grid-Scale Energy Storage Systems<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872,11853],"class_list":["post-375100","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","tag-dd-news","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/375100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=375100"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/375100\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=375100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=375100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=375100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}