Page 57 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

h. Government has set up thirteen Renewable Energy Management Centres (REMCs) for better
forecasting and real time monitoring of RE generation. The National Centre for Medium Range
Weather Forecasting (NCMRWF), in coordination with the Indian Space Research Organisation
(ISRO), provides advanced meteorological inputs to system operators and other stakeholders,
which are utilized for renewable generation and demand forecasting, thereby supporting
effective management of variability in RE generation.

i. Hybrid RE power plants, Energy Storage Systems such as BESS (Battery Energy Storage System)
and PSP (Pump Storage Project) are being promoted for mitigating variability in RE generation
and provide adequate frequency support to the grid.

(ii) Deployment of Smart Grid Technologies:

a. Advanced grid support technologies such as Static Synchronous Compensators (STATCOMS),
Synchronous Condensers (SynCONs) and other Flexible AC Transmission System (FACTS) devices
are planned to enhance voltage stability, improve system strength, and support reliable
integration of renewable energy.

b. Automatic Generation Control (AGC) and Ancillary Services (SRAS/TRAS) have been
implemented for frequency regulation and balancing.

c. Under the Revamped Distribution Sector Scheme (RDSS), Supervisory Control and Data
Acquisition (SCADA) works have been sanctioned for distribution system covering 455 towns.

(iii) Development of Energy Storage Systems (ESS):

a. ESS, as part of the power system, is defined under clause (50) of Section 2 of the Electricity Act,
2003.

b. Implementation of two Viability Gap Funding (VGF) schemes for the development of
approximately 43.8 GWh of Battery Energy Storage Systems.

c. For incentivizing the ESS, 100% waiver of Inter-State Transmission System (ISTS) charges has
been extended for co-located BESS projects commissioned till June, 2028 and hydro Pumped
Storage Plants (PSPs) where construction work is awarded up to June, 2028.

d. Ministry of Power has issued Tariff Based Competitive Bidding (TBCB) Guidelines for
procurement of storage capacity and stored energy from Hydro PSP, Battery Energy Storage
Systems and Firm and Dispatchable RE (FDRE) to facilitate standardized and transparent bidding
process.

e. Ministry of Heavy Industries is implementing a Production-Linked Incentive (PLI) Scheme with an
outlay of ?18,100 crore for establishing 50 GWh of Advanced Chemistry Cell manufacturing
capacity, of which 10 GWh is earmarked for grid-scale storage.

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