Power Ministry amends VGF scheme rules for battery storage projects

The Ministry of Power has revised its operational guidelines for the Viability Gap Funding (VGF) scheme to support battery energy storage systems (BESS) through the Power System Development Fund (PSDF).

As per the notification, Clause 3.6 has been updated to allow project connectivity to either the intra-state transmission system (InSTS) or the inter-state transmission system (ISTS). Grid connection and land procurement responsibilities will follow the stipulations outlined in the Request for Selection (RfS) document.

A new Clause 3.9 requires that the energy management system (EMS) software used in BESS projects be developed within India.

Additionally, an amendment to Section 4 introduces a new responsibility for the Renewable Energy Implementing Agencies (REIAs). The implementing entities must ensure that the installed BESS meets established industry standards and does not contain refurbished battery cells.

These changes were issued with formal approval from the competent authority.