Govt grants, policy support to power 4 GW battery capex by fiscal 2028, says CRISIL
Tailwinds from government grants in the form of viability gap funding (VGF) for battery storage systems and other favourable policy announcements should lead to ~4 gigawatt (GW) of battery storage capacity by fiscal 2028, said a report by CRISIL Ratings. Another driver of this, it added, will be improvement in return on capital (returns) profile of standalone storage projects by 300-400 basis points (bps) to 12-13 per cent, bumped up by grants and an on-year fall of ~20 per cent in battery prices.
Renewable capacity (solar and wind) has grown to ~120 GW as of December 2023 from ~70 GW as of December 2019, propelled by government thrust and strong investor interest.
