Energy Storage News•14 days ago
India introduces 20% domestic content rule for Viability Gap Funding of battery storage
Key Takeaway
India's new 20% domestic content rule for battery storage VGF significantly impacts project development, supply chain decisions, and the economics for IPPs and large power consumers in the region.
AI Summary
- •The Indian government has implemented a new policy requiring 20% domestic content for battery storage projects to qualify for Viability Gap Funding (VGF).
- •This policy aims to stimulate local manufacturing and supply chain development for battery storage components within India.
- •Developers and IPPs pursuing battery storage projects in India will need to adjust their procurement strategies to meet the domestic content threshold, potentially impacting project costs, timelines, and supplier selection.
- •Large power consumers relying on VGF-supported battery storage projects may see shifts in project economics or component sourcing due to this new mandate.
Topics
financingoempolicystorage