Government of India set to launch grid battery subsidy scheme worth $2.63 billion

With its vision set on Renewable Energy Goal 2030, the Indian government is reportedly formulating a subsidy scheme, worth billions of dollars, aimed at bolstering the production of electricity grid batteries as part of its planned transition towards clean energy. This scheme, proposed by the power ministry, seeks to introduce a production-linked incentive subsidy plan that will allocate a substantial sum of $2.63 billion from the current year until 2030. The subsidies will be made available to companies willing to establish battery cell manufacturing facilities within India, as per a Financial Times report. What Are Grid Batteries? Electricity grid batteries, often referred to as energy storage systems, play a crucial role in the modern energy landscape. These advanced devices store electrical energy during periods of excess supply and discharge it back into the grid during times of high demand. By doing so, they help to stabilize and balance the power grid, ensuring a consistent and reliable electricity supply. These batteries are essential components in the transition to clean energy sources, as they facilitate the integration of intermittent renewable energy, such as solar and wind power, into the grid. By capturing and storing surplus energy during peak generation periods, these batteries ensure a steady supply of electricity even when the sun isn’t shining or the wind isn’t blowing. They act as a vital buffer, mitigating fluctuations in energy production and enabling a smoother transition towards a cleaner and more sustainable energy future. India’s Transition To Clean Energy The draft proposal for the subsidy scheme recognizes the limitations of expanding coal-based thermal generation due to growing international concerns about climate change and environmental impacts. It emphasizes the necessity of transitioning to cleaner energy alternatives and acknowledges that further reliance on coal is no longer a viable option. Moreover, apart from driving the energy transition, the proposal also emphasizes the importance of domestic battery cell manufacturing in reducing India’s reliance on battery imports from its rival, China. It highlights the urgency of establishing local manufacturing capabilities for battery energy storage systems to ensure energy security and independence. Renewable Energy Goal 2030 While the Indian power ministry has not yet provided an official response to questions about the proposal, it is evident that the government is taking proactive steps to accelerate the adoption of electricity grid batteries, encourage domestic manufacturing, and pave the way for a sustainable, resilient, and self-reliant energy sector. The Indian government has planned to hit a national capacity of 500GW of renewable energy, and meeting 50 per cent of its energy requirements from renewables, by 2030. As of 2022, India is the world’s third-largest producer of renewable energy, with 40 per cent of its installed electricity capacity coming from non-fossil fuel sources, as per data provided by the Ministry of New and Renewable Energy. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook_,_  Twitter and  Instagram_._