Rs 14,500-cr energy storage push faces viability test
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Union Cabinet on Wednesday approved ₹14,500 crore in viability gap funding to boost energy storage by 92 GWh.
- ✓Experts warn that subsidies alone cannot ensure commercial viability.
- ✓Charith Konda said, "Finance or capital is not the real bottleneck in accelerating energy storage deployment in India," citing aggressive bidding risks.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
India's ₹14,500-crore viability gap funding aims to boost energy storage capacity by 92 GWh, unlocking nearly ₹1 lakh crore in investments, but challenges remain around financing, utilisation, and commercial sustainability. Experts highlight risks of aggressive bidding, import dependence, and ensuring affordable tariffs for DISCOMs despite competitive storage tariffs.
Energy specialists warn that aggressive bidding, execution risks and inadequate utilisation could undermine the benefits of the subsidy, raising questions over whether public funding will translate into reliable power supply.
"Finance or capital is not the real bottleneck in accelerating energy storage deployment in India," said Charith Konda, lead energy specialist at the Institute for Energy Economics and Financial Analysis (IEEFA), pointing to unsustainable bidding practices, import dependence and price uncertainty as bigger challenges.
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