India's clean energy plans hit by battery storage project cancelations
India's big plans for clean energy are running into trouble because of issues with battery storage, which is key for solar and wind power.
Since 2018, 24 GWh worth of battery projects have been canceled or re-tendered, with the sub-₹2/kWh issue tied to a separate 22 GWh tranche under the VGF 2.0 plan, even though as per current trends, BESS tariff must be at least ₹2.4 per unit to be seen viable.
This has led to major cancelations, like NTPC's deal with GR Infraprojects and West Bengal's big storage project.
Chinese battery prices up 32%
To make things tougher, Chinese battery prices jumped 32% this year, and India relies on these imports. That means higher costs and more uncertainty for new projects.
On the bright side, the retendered capacity is seeing higher tariffs, with MSEDCL and SJVN citing a tariff rise from ₹1.97 per unit a few months back to ₹2.35 in just some months, which could help stabilize things as rules and funding keep evolving.