Store
GS3 · Energy storage

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

1 min readEnergyRenewable Energy
Battle IAS current affairs title card: Battery storage cost falls from ₹10.18 to about ₹2.1 per kWh (GS3 · Energy storage, 15 December 2025)

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

GS-III Infrastructure: energy, ports, roads, airports, railways; investment models

  1. 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.
  2. 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 point

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: 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

ExplainerRenewable Energy in India: Potential, Installed Capacity, 500 GW Target, Key Schemes (PM-KUSUM, PM Surya Ghar), Challenges and Way Forward (UPSC Notes + PYQs)ExplainerGreen Hydrogen: Colours of Hydrogen, Electrolysis, National Green Hydrogen Mission, Uses, Costs and Challenges (UPSC Notes + PYQs)

Official source: PIB: MoP: BESS cost falls, 15 Dec 2025

facts from cited sources only; faculty review pending