Battery storage cost falls from ₹10.18 to about ₹2.1 per kWh

What happened
- BESS cost discovered in 2022-23 bids was about ₹10.18/kWh at two cycles a day; recent bids show about ₹2.1/kWh without VGF. At an expected 1.5 cycles a day it is about ₹2.8/kWh [Lok Sabha reply, PIB].
- VGF support covers 13,220 MWh with ₹3,760 crore, plus a June 2025 scheme for 30 GWh with ₹5,400 crore from PSDF. Co-located BESS commissioned by June 2028 get a 12-year ISTS charge waiver [PIB].
Background
- Solar power from recent tenders costs about ₹2.5/kWh [PIB].
Why it matters
- Solar plus storage is now close to being cheaper than new coal for evening peaks. That changes the planning case for new thermal plants.
How to use this in Mains
- As per PIB (2025-12-15): BESS cost discovered in 2022-23 bids was about ₹10.18/kWh at two cycles a day; recent bids show about ₹2.1/kWh without VGF. At an expected 1.5 cycles a day it is about ₹2.8/kWh.
- Solar plus storage is now close to being cheaper than new coal for evening peaks. That changes the planning case for new thermal plants.
Quotable data pointVGF support covers 13,220 MWh with ₹3,760 crore, plus a June 2025 scheme for 30 GWh with ₹5,400 crore from PSDF. Co-located BESS commissioned by June 2028 get a 12-year ISTS charge waiver.
PIB: MoP: BESS cost falls, 15 Dec 2025
Exam angle
UPSC
Prelims: VGF, PSDF. · Mains: grid integration of renewables.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
BESS cost in recent bids (2 cycles/day, no VGF)
Answer (c) & explanation
PIB.
Practice · UPSC
The 30 GWh VGF scheme is funded through
Answer (b) & explanation
PIB.
Practice · UPSC
VGF stands for
Answer (a) & explanation
PIB.
Go deeper
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Official source: PIB: MoP: BESS cost falls, 15 Dec 2025
facts from cited sources only; faculty review pending