Amaravati, April 17, 2025 – The Central Government has approved an additional 1,000 MWh Battery Energy Storage System (BESS) for Andhra Pradesh, bringing the total energy storage capacity to 3,000 MWh. This move comes as part of the Viability Gap Funding (VGF) scheme, aimed at improving grid stability. The state already has 19,000 MW of power purchase agreements, with 7,800 MW from renewable sources, which often leads to an excess of 1,500 MW during the day due to the “must-run” policy for renewables.
To manage this surplus and address grid base load challenges, the state government has proposed allocating 4,000 MWh worth of BESS projects to the Centre. With 10,000 MW of additional renewable energy projects set to come online within the year, these storage solutions will help manage the excess power, which is particularly important during peak demand periods when grid stability can be affected.
