Daily News Wrap-Up: MoP Announces ₹54 Billion BESS VGF Tranche Two
Government announces 100% ISTS charges waiver for PSPs and co-located BESS
June 11, 2025
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The Ministry of Power announced the second tranche of viability gap funding (VGF) to support battery energy storage systems (BESS) development in India. Under this tranche, a VGF of ₹1.8 million (~$21,043)/MWh will be provided to support the development of 30 GWh of BESS capacity. The funding will be sourced from the Power System Development Fund (PSDF), with a total financial outlay of ₹54 billion (~$631.30 million). Of the proposed 30 GWh, 25 GWh of storage capacity has been allocated across 15 states to help them address their energy storage requirements. NTPC will develop the remaining 5 GWh. This allocation is intended to maximize the utilization of NTPC’s existing thermal generation and transmission infrastructure while ensuring a reliable and cost-effective electricity supply during non-solar hours.
The Ministry of Power granted a 100% interstate transmission system (ISTS) waiver for pumped storage projects for which construction works were awarded on or before June 30, 2028. A 100% waiver has also been granted to co-located BESS that will be commissioned on or before June 30, 2028. This waiver will be granted if the power from such BESS projects is consumed outside the state where these systems are commissioned. A BESS project will be considered as co-located if the BESS and renewable project are situated at the same ISTS substation. For non-co-located BESS projects, the ISTS charges waiver will be per the extant orders issued by the Ministry of Power and the Central Electricity Regulatory Commission regulations.
With a rapid increase in energy storage systems (ESS) deployments in India, Maharashtra-based ESS provider AmpereHour Energy is taking it one step further by deploying intelligent ESS. This technology enables the systems to respond dynamically to grid conditions, predict demand patterns, and deliver multiple services, including frequency regulation. Speaking with Mercom India, Ayush Misra, CEO at AmpereHour Energy, highlighted the emergence of intelligent ESS, its growing adoption trend in the country, and the obstacles to its large-scale deployment.
The Central Pollution Control Board (CPCB) issued draft guidelines for the collection and storage of waste from solar modules and cells. Stakeholders can submit comments and suggestions to CPCB by June 25, 2025. Solar waste refers to end-of-life solar modules or cells that are discarded whole or in part as waste. It includes rejects and waste generated during manufacturing, refurbishment, and repair processes. It also covers solar modules that were damaged during transportation, handling, storage, and installation. Under the E-Waste (Management) Rules, 2022, solar waste is categorized as electrical and electronic equipment waste. The rules place the onus of managing solar waste on the manufacturers of solar components. Manufacturers must store solar waste up to the end of the financial year 2035.
The Maharashtra Electricity Regulatory Commission rejected a petition filed by a renewable energy consultant seeking the abolition of grid support charges imposed on rooftop solar systems with capacities above 10 kW and below 1 MW. The Commission ruled that grid support charges are a valid regulatory tool implemented through due legal and consultative processes and cannot be scrapped based on the contentions raised in the petition. It emphasized that the existing charges are not discriminatory and serve a critical function in enabling the distribution license to recover legitimate costs related to grid infrastructure and service provisioning.
Punjab Energy Development Agency issued a request for selection for the solarization of 200 irrigation pumps under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Uthan Mahabhiyaan (PM-KUSUM) in various divisions in Punjab. Bids must be submitted by June 25, 2025. Bids open on the same day. Bidders must design, survey, supply, install, test, and commission 200 individual irrigation pumps to be solarized with net metering. All the existing AC pumps must be replaced with a minimum three-star energy-efficient pump.
HPCL Renewable and Green Energy (HPRGE) issued a tender to set up a central monitoring and analytics system for four renewable energy projects with a cumulative capacity of 3.3 GW across various states. Bids must be submitted by June 20, 2025. Bids will be opened on the same day. The four renewable energy projects are 629 MW of ground-mounted solar installations, 2,665.5 MW of rooftop solar systems, a 46 MW wind project, and a 1 MW solar project in the LNG Terminal Chhara, Gujarat. The scope of work involves deriving insights from data collected from HPRGE’s renewable energy projects. It also includes providing a centralized asset performance monitoring software solution that can integrate with HPRGE’s solar and wind farms.
New Delhi-based sustainability and clean mobility startup Vecmocon raised $18 million (~₹1.54 billion) in a Series A funding round from Ecosystem Integrity Fund, Aavishkaar Capital, and the U.K.’s development finance institution, British International Investment. The investment round also saw participation from existing investor, Blume Ventures. This funding will be used to support the company’s plans to expand market presence and enable its solutions to power over 100,000 vehicles on Indian roads. It will also utilize the funding to advance capabilities in embedded design, power electronics, the Internet of Things, and data science. A portion of the funding supports team expansion and the establishment of research and development infrastructure for the electric vehicle sector.