MNRE plans new scheme for floating solar power projects with battery storage, seeks up to Rs 8,000 crore VGF from Finance Ministry

New Delhi [India], December 4 (ANI): The Ministry of New and Renewable Energy (MNRE) is preparing to launch a new scheme for floating solar power projects equipped with battery storage systems. According to Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, the ministry has approached the Finance Ministry seeking budget approval and viability gap funding (VGF) worth Rs 7,000-8,000 crore for the initiative.

Speaking at the India Edge Event organised by the Confederation of Indian Industry (CII) on Thursday, Sarangi said, "The MNRE is planning to come out with a new scheme for floating solar with battery storage. MNRE approached the Finance Ministry for budget and approval of VGF worth Rs 7-8 thousand crores. These floating solars will be mounted on water reservoirs of around 300 GW capacity."

Earlier in the day, Sarangi also noted that by 2030, India expects nearly 60-80 GW of renewable energy (RE) to come from commercial and industrial (C&I) developers, marking a major shift in how clean power grows in the country.

He said, "RE through C&I installation trend is also seen. By 2030, we estimate around 60-80 GW of RE would be provided by the developers of C&I."

The Secretary noted that the developers in this segment would play a major part in meeting India's clean energy needs by 2030. He added that rooftop solar panels are also spreading in many regions, and this trend will continue in the coming years.

Sarangi said that states such as Madhya Pradesh and Gujarat are showing strong progress.

He said Madhya Pradesh "is one of the progressive states in terms of Renewable Energy," adding that many states are now bringing out tenders that match their own needs. He explained that a clear pattern is emerging in which more states choose renewable paths that work for them.

He said the growth of renewable energy is now moving at a pace that will only get faster. He explained that India's electricity demand is set to rise quickly and, with that, the demand for renewable power will also rise. As states float more tenders, their role in supporting this shift will become more important.

Sarangi pointed out that some challenges remain, especially with integrating renewable energy into the grid. He said that solving these issues needs immediate attention.

According to him, adding battery systems to the transmission network and increasing storage capacity will be necessary steps.

On energy security, he said the country must ensure strong supply chains while also expanding storage. He highlighted that Indian companies should use the benefits available under the Production-Linked Incentive scheme to grow further in this field. He noted that India's solar module manufacturing capacity has reached nearly 140 GW.

Sarangi also mentioned the changing cost of grey ammonia, which has risen from 450 to 550 USD, partly because of the fall in the value of the rupee. He said the government is pushing many ports to set up bunkering facilities using Green Hydrogen Mission funds. These steps, he explained, will help build the country's green hydrogen production ecosystem.

He said the MNRE is working closely with the Central Transmission Utility, Central Electricity Authority, Ministry of Power and the power regulator. As per Sarangi, the ministry has strong engagement with industry, holding monthly meetings with the solar, wind and other sectors to support smooth renewable energy production. (ANI)

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