The International Finance Corporation (IFC) and IndiGrid have announced a strategic partnership to develop a 180 MW/360 MWh standalone battery energy storage system (BESS) in Gujarat. The initiative is a significant step toward strengthening grid stability and ensuring consistent power supply during peak demand, aligning with Gujarat’s clean energy ambitions.

The BESS project will play a critical role in supporting the integration of renewable energy sources like solar and wind into the grid, addressing peak load and dispatch challenges. As India moves toward its 2030 target of 500 GW clean energy capacity, utility-scale battery storage systems are increasingly vital for energy transition and reliability.

IFC Commits $55 Million in Long-Term Financing

To back the project, IFC is investing approximately Rs. 4.6 billion (around $55 million) through listed non-convertible debentures issued by IndiGrid. This includes $38.5 million from IFC’s own account and $16.5 million in concessional financing from the Clean Technology Fund (CTF). This investment builds on a continuing partnership between IFC and IndiGrid, which has already seen Rs. 32.5 billion (about $380 million) in financing extended since 2023.

Harsh Shah, Managing Director of IndiGrid, highlighted that battery energy storage systems are essential to India’s renewable energy future, reducing dependence on fossil fuels and enhancing grid reliability. IFC’s Regional Director for South Asia, Imad N Fakhoury, noted that such projects diversify the energy mix and ensure clean power availability during peak hours. The initiative also supports Gujarat’s goal of achieving 100 GW of renewable energy capacity by 2030 and offers a model for other states to follow.

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