Govt Amends BESS Norms, Allows 4-Hour Single Cycle Configurations

The Ministry of Power has relaxed its guidelines for the implementation of Battery Energy Storage Systems (BESS) under the Viability Gap Funding (VGF) scheme. The ministry, in its latest notification, has allowed states flexibility to implement BESS projects in a four-hour configuration. This allows greater flexibility for states and state utilities in issuing tenders as per the local grid demand and peak demand conditions.

The order came after states like Rajasthan, Kerala, Odisha, Bihar, and Chhattisgarh had approached the ministry seeking deviation from the scheme norms. These were meant for BESS projects under the VGF scheme supported through the Power System Development Fund (PSDF).

What The MoP Said?

“In this regard, I am directed to convey that the states may implement the BESS projects in 2-hour/4-hour configuration while retaining the contractual right to utilise at least 63,000 cycles of BESS during the contract period,” the order signed by Vishal Kumar, Under Secretary to the ministry, said.

State government officials see the new notification as a means of allowing more flexibility for the integration of renewable energy generation in the state. Ajitabh Sharma, Principal Secretary in Rajasthan, in his social media post, said that the 4-hour single cycle discharge in phases will give more flexibility in renewable energy generation in the state.

Experts said that a 4-hour cycle is a more viable option as 2-hour cycles often remain underutilised.

Rajasthan’s Tender for 500 MW Standalone BESS

The Rajasthan government, meanwhile, has planned a tender for developing 500 MW/2000 MWh of standalone BESS for a 4-hour single cycle operation with an extended period of life after getting the relaxation from the Ministry of Power. The state is planning 6,000 MWh of BESS in Rajasthan. It already has 4,000 MWh under implementation under the 2-hour, 2-cycle pattern. The government has planned another 2,000 MWh with a 4-hour single-cycle design. The state faced challenges in implementing its 6,000 MWh in the 2-hour format due to the second cycle charge from solar, which confronted challenges with the demand curve.