Good news for solar and battery storage firms as Finance Ministry panel clears Rs 5,000 crore scheme
By Abhay Shukla
The government has taken a step to support clean energy and battery storage in the country. The Expenditure Finance Committee (EFC) under the Finance Ministry has approved a fund of Rs 5,000 crore for a floating solar scheme. The scheme will also include battery energy storage systems.
This move is seen as positive for companies working in solar energy, battery storage and renewable energy projects. It is also expected to support the growth of green energy and improve power supply stability in the country.
Sources told Zee Business, the Ministry of New and Renewable Energy (MNRE) had sought around Rs 6,500 crore for the scheme. However, the EFC has approved Rs 5,000 crore at this stage.
The final guidelines and structure of the scheme are still awaited.
Zee Business had earlier reported that MNRE was planning a scheme that would combine floating solar projects with battery storage systems. The latest approval shows that the proposal is moving ahead.
The Finance Ministry and MNRE did not respond to email queries from Zee Business on this matter.
What is floating solar scheme
Floating solar means solar panels are installed on water bodies instead of land. These panels are placed on structures that float on lakes, dams or reservoirs.
This reduces the need for land. This is useful in a country where land is limited and expensive in many areas.
There are other benefits to floating solar systems too. Because the panels are situated over water, they stay cooler. This can increase their efficiency.
In some cases, it also helps reduce water loss due to evaporation.
Because of these advantages, floating solar is being seen as an important part of renewable energy plans.
Battery storage system
The scheme will also include battery energy storage systems (BESS). Battery storage helps store extra electricity produced during the daytime.
Solar power is not available at all times as it depends on sunlight. It is generated during the day but not at night.
This creates a gap between electricity demand and supply.
Battery storage helps fill this gap. It stores electricity and supplies it later when needed.
In simple terms, it works like a backup system for electricity supply.
It also helps in keeping the power grid stable and reduces pressure during peak demand hours.
Because of this, battery storage is becoming an important part of India’s clean energy strategy.
Impact on companies
The approval is expected to benefit companies working in floating solar projects, battery storage systems and engineering, procurement and construction (EPC) work.
These companies may see new opportunities as more projects are planned under the scheme.
Investor interest in these sectors may also increase.
However, the actual impact will depend on the final guidelines of the scheme. These rules will decide how projects are awarded and how funds will be used.
Earlier reports and development
Zee Business had earlier reported that MNRE was working on a plan to combine floating solar and battery storage under a single scheme.
The latest approval from the EFC shows that the proposal is moving forward.
However, there has been no official response from the Finance Ministry or MNRE on the email queries sent by Zee Business regarding the matter.
Significance of the move
The approval is important as India is focusing on increasing renewable energy capacity. But renewable sources such as solar require storage systems to provide a steady supply of power. The government’s plan is to combine floating solar with battery storage, to make clean energy more reliable and usable.
Floating solar also helps in better use of water bodies for energy generation without using land.
This article has been republished from The Zee News.