Page 52 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Shri Puri reiterated that the Government is fully committed towards strengthening the biofuel ecosystem
in the country to ensure energy security, reduce crude oil imports, support farmers, and promote
environmental sustainability.

Union Minister Shri Manohar Lal Chairs the Meeting of the Consultative Committee of the Members of
Parliament for Ministry of Power on 4th Aug, 2025 to discuss the Grid Scale Energy Storage Systems

The Ministry of Power held a high-level Consultative Committee meeting on 4th August 2025, chaired by
Hon’ble Union Minister of Power and Housing Affairs Shri Manohar Lal ji. The meeting was attended by
Sh. Shripad Yesso Naik, Hon’ble Minister of State of the Ministry of Power and New & Renewable Energy,
Members of the Consultative Committee on Power from Lok Sabha and Rajya Sabha, senior officials from
the Ministry, CPSUs, and experts from the Central Electricity Authority (CEA) to deliberate on India’s
energy storage roadmap and future energy security.

Secretary (Power), Government of India (GoI) extended a warm welcome to the distinguished participants
of the Meeting and urged for collective deliberation on specific challenges being faced in the power sector
and to explore potential solutions for helping in bringing down the variability of generation in RE sources,
improve grid stability, enable energy/ peak shifting, and provide ancillary support services enabling larger
renewable energy integration.

Hon’ble Union Minister of Power in his address mentioned that India is committed to reduce Emissions
Intensity of its GDP by 45 percent by 2030 from 2005 level, and achieve 50 percent cumulative installed
capacity from non-fossil fuel-based energy resources by 2030. Hon’ble Minister remarked that RE should
be promoted coupled with energy storage systems in order to ensure reliability of supply of power, for
storing excess energy available from RE sources to be used at other times of the day. Hon’ble Minister of
Power mentioned that the Ministry has taken various policy initiatives to promote Energy Storage Systems
laying emphasis on ensuring Resource Adequacy and necessary power generation capacity tie-ups.

Hon’ble Minister of Power emphasized that in one of the largest program on BESS worldwide, 43 GWh
Battery Energy Storage Systems (BESS) is supported under Viability Gap Funding Scheme (VGF) of Ministry
of Power. Financial support of Rs 9,160 Cr has been earmarked for BESS VGF schemes. The Inter-State
Transmission System (ISTS) charges have been fully waived for BESS projects commissioning by June 2028
and PSP projects for which construction awarded by June 2028.

It was mentioned that in terms of Hydro PSP (Pumped Storage Plant), India already has an installed
capacity of approx. 6.4 GW. India has a PSP potential of more than 200 GW. At present, approx. 8 GW is
under construction and 61 GW is in various stages of planning and development.

The Members of the Consultative Committee for Ministry of Power offered several valuable suggestions
regarding various initiatives and schemes on BESS. They praised the VGF scheme and especially the role
of smart meters in improving the services and reducing the losses. They praised the role of VGF scheme
in providing reliability of supply of power, for storing excess energy available from RE sources to be used
at other times of the day power to consumers through execution of distribution infrastructure works.
Further, the members lauded Union Minister Shri Manohar Lal for organizing the Consultative Committee

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