Ministry Of Power Mandates Indigenous Software And Quality Standards In BESS VGF Scheme Amendments

Representational image. Credit: Canva

The Ministry of Power has made key changes to the operational guidelines for the Viability Gap Funding Scheme for Battery Energy Storage Systems. These changes were communicated in a letter dated August 4, 2025, to the Principal Secretaries of Energy in several states. The main focus of these amendments is to promote the use of indigenous software and to ensure that battery energy storage systems installed in the country meet high-quality standards.

One of the most important changes is the introduction of a new clause, numbered 3.9, which mandates that the application software for the Energy Management System of the BESS must be developed indigenously within India. This is a major step towards encouraging the use of homegrown technology in energy projects and promoting self-reliance in this vital sector.

Another important amendment is the revision of clause 3.6. This clause now clarifies the responsibilities for grid connectivity and land. The updated version of the clause states that the project can be connected either to the intra-state transmission system or the inter-state transmission system. However, the responsibility for arranging grid connectivity and land will lie as per the provisions of the Request for Selection document. This clarification is expected to help project developers understand their roles and duties more clearly and plan their projects accordingly.

In addition to these two major updates, the Ministry has also added a new sub-clause under Guideline 4. This new clause focuses on quality assurance and addresses concerns about the use of second-hand materials. It clearly states that the Eligible Entity or the Renewable Energy Implementing Agency will be responsible for ensuring that the installed BESS is of the required quality and that refurbished battery cells are not used in any part of the project. This measure is aimed at protecting the long-term performance and safety of the energy storage systems being installed across the country.

The Ministry’s letter was sent to the Principal Secretaries of Energy of several key states, including Rajasthan, Gujarat, Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Madhya Pradesh, Telangana, Uttar Pradesh, Haryana, Kerala, Punjab, Chhattisgarh, Odisha, and Uttarakhand. These are the states that are expected to play a major role in the rollout of battery energy storage systems under the VGF scheme.

In addition to state officials, the letter was also shared with several key stakeholders at the central level. This includes the Chairperson of the Central Electricity Authority, the Chairmen and Managing Directors of NTPC and Grid India, and senior officials at the Ministry of Power, including the Secretary and Additional Secretary.

The changes reflect India’s continued commitment to expanding its renewable energy capacity with the help of reliable and domestically supported battery storage systems. The focus on indigenous software development and quality assurance underlines the government’s strategy to strengthen the country’s energy infrastructure while supporting the local technology ecosystem.


Subscribe to get the latest posts sent to your email.

 

  • Related Posts

    Recurrent Energy Secures €1.3 Billion Credit Facility To Accelerate Renewable Expansion Across Europe

    Solar panels and wind turbines exemplify sustainable energy financing in Europe. Recurrent Energy, a global developer of solar and energy storage projects and part of Canadian Solar, has secured a…

    Solar Adoption In Singapore Condominiums Faces Cost, Design, And Consensus Challenges

    Representational image. Credit: Canva Singapore’s efforts to expand solar energy adoption are encountering notable challenges in private residential developments, particularly condominiums. While the country has set ambitious sustainability targets and…

    Have You Seen?

    Oilfield Service Firm Halliburton is Discussing Commercial Terms With Customers for Venezuela Operations

    • April 22, 2026
    Oilfield Service Firm Halliburton is Discussing Commercial Terms With Customers for Venezuela Operations

    North Dakota Crude Output to Rise as Operators Eye High Oil Prices

    • April 22, 2026
    North Dakota Crude Output to Rise as Operators Eye High Oil Prices

    China’s CATL Debuts EV Battery With Speedy Six-Minute Recharge and a 1,000-km Range

    • April 22, 2026
    China’s CATL Debuts EV Battery With Speedy Six-Minute Recharge and a 1,000-km Range

    Norway Pumps Near Capacity as Spare Output Buffer Disappears

    • April 21, 2026
    Norway Pumps Near Capacity as Spare Output Buffer Disappears

    Sanctioned Iranian VLCC Crosses Hormuz Line Hours Before Ceasefire Deadline

    • April 21, 2026
    Sanctioned Iranian VLCC Crosses Hormuz Line Hours Before Ceasefire Deadline

    Activists Sue Shell Over Emissions, Again

    • April 21, 2026
    Activists Sue Shell Over Emissions, Again

    Long-Haul Flight Fares Soar as Iran War Hits European Aviation Hard

    • April 21, 2026
    Long-Haul Flight Fares Soar as Iran War Hits European Aviation Hard

    Iran, US Talks Hit Impasse as Truce Nears Expiry

    • April 21, 2026
    Iran, US Talks Hit Impasse as Truce Nears Expiry

    US Crude and Fuel Exports Surge to Record Highs, But it’s Not Enough: Russell

    • April 21, 2026
    US Crude and Fuel Exports Surge to Record Highs, But it’s Not Enough: Russell

    Trump Says He Does Not Want to Extend Ceasefire With Iran

    • April 21, 2026
    Trump Says He Does Not Want to Extend Ceasefire With Iran