Battery Energy Storage System

Why in news?

• The Indian government has approved viability gap funding (VGF) to cover up to 40% of the total capital cost for the establishment of a 4,000 MWh battery energy storage system (BESS) in the country.
• This initiative is aligned with India’s renewable energy goals, as the country has seen significant growth in solar and wind energy capacity, meeting 25% of its energy demand from renewables, including large hydro plants.

About Battery Energy Storage System:

• Battery Energy Storage System (BESS) is a system that stores electrical energy in batteries for later use.
• BESS stores surplus electricity when available and discharge it when demand is high or during power outages.
  • The BESS aims to enable the use of stored renewable energy during peak hours, promoting round-the-clock renewable energy supply.
• The scheme supports India’s ambition to achieve 50% of its energy requirements through renewable and non-fossil energy sources by 2030, while also contributing to carbon emissions reduction.

Components:

• Batteries (lithium-ion, lead-acid, etc.)
• Inverters for converting DC to AC power
• BMS (Battery Management System) for monitoring and managing battery health and performance.

Applications:

• Grid stabilization and frequency regulation.
• Energy shifting to optimize energy consumption.
• Backup power during outages.
• Integration of renewable energy sources.

Benefits:

• Smoothing out intermittent renewable energy generation
• Reducing peak demand and associated costs
• Enhancing grid reliability
• Supporting renewable energy adoption.
• BESS can reduce greenhouse gas emissions by improving energy efficiency and integrating renewable energy sources.

PRACTICE QUESTION:

With reference to Viability Gap Funding (VGF), consider the following statements:

1. It is a grant provided to support projects which are economically justified but lack financial viability.

2. A private sector company shall be eligible for VGF only if it is selected based on open competitive bidding.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer