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A total of 13,220 MWh BESS capacity has been allocated under the Viability Gap Funding (VGF) scheme so far in 2024, said Shripad Yesso Naik, Minister of State for New and Renewable Energy and Power.
In response to a query on existing operational battery storage, Naik stated that nine BESS projects with individual capacities of at least 1 MWh are currently functional in the country. These projects have a cumulative installed capacity of 204.5 MW/505.6 MWh.
About the VGF Scheme For BESS
In a written reply before the Rajya Sabha, he clarified, "The Viability Gap Funding (VGF) scheme in 2024 was undertaken to support the development of Battery Energy Storage Systems (BESS) in the country."
"The scheme has recently been extended for the development of an additional BESS capacity of 30,000 MWh, which will be supported through the Power System Development Fund (PSDF)", the minister said.
"As of June 30, 2025, the cumulative installed solar power capacity in India stood at 116.25 GW. The energy generated from solar during the 2024–25 period is 144.15 billion units," he added. Naik shared the update in response to a separate question on whether the ministry has any ongoing or planned schemes to support Micro, Small, and Medium Enterprises (MSMEs) and startups working in battery storage for solar grid integration.
BESS Awards Hit Record High as Developers Step Up
A recent report by Rystad Energy highlighted significant growth in India’s battery energy storage systems (BESS) sector. BESS capacity more than doubled in the first half of the year, with 5.4 GW of co-located solar-BESS and 2.2 GW of standalone BESS projects awarded to developers — the highest allocation to date. The report also noted increased participation in auctions, reflecting growing emphasis on grid stability and renewable energy integration.