BESS policy push in major countries across the world

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[🇮🇳] India: A Policy-Driven Push for BESS

India has developed a comprehensive framework to promote BESS adoption, especially for grid-scale applications:

Key National Policies and Guidelines

  • National Framework for Promoting Energy Storage Systems (2023): Defines BESS as a critical grid asset and outlines its role in generation, transmission, and distribution.
  • Viability Gap Funding (VGF) Scheme: ₹5,400 crore allocated to support 4,000 MWh of BESS capacity under Phase 1.
  • Production Linked Incentive (PLI) Scheme: ₹18,100 crore for Advanced Chemistry Cell (ACC) battery manufacturing.
  • Energy Storage Obligation (ESO): Mandates DISCOMs to procure a portion of power from storage sources under Renewable Purchase Obligations (RPO).
  • Waiver of Inter-State Transmission Charges: For BESS projects co-located with renewable energy.
  • Battery Waste Management Rules (2022): Ensures safe disposal and recycling of battery components.
  • Ancillary Services Regulations (2022): Recognizes BESS for frequency regulation and grid balancing

[🇺🇸] United States: Tax Incentives and Market Liberalization

Inflation Reduction Act (IRA) – 2022

  • Standalone BESS Eligibility: Storage no longer needs to be paired with solar to qualify for tax credits.
  • Investment Tax Credit (ITC): Up to 30% for BESS projects, with bonuses for domestic content and energy community siting.
  • Production Tax Credit (PTC): Applies to clean energy projects including BESS.
  • State-Level Incentives: California, Texas, and New York offer additional grants, rebates, and market access for BESS

[🇪🇺] European Union: Green Deal and Sovereignty Fund

EU Green Deal Industrial Plan

  • Subsidies and Tax Breaks: For green technologies including BESS.
  • European Sovereignty Fund: Proposed to support domestic clean tech manufacturing.
  • Streamlined Permitting: Efforts underway to reduce bureaucratic delays for BESS deployment.
  • Country-Specific Initiatives:
    • Germany: KfW loans and subsidies for residential and commercial storage.
    • UK: Capacity Market and Contracts for Difference (CfD) schemes include BESS

[🇨🇳] China: Dominating Through Scale and Supply Chain Control

  • National Energy Administration (NEA) mandates energy storage for new renewable projects.
  • Subsidies and Low-Interest Loans: For BESS manufacturing and deployment.
  • Grid Code Reforms: To integrate BESS into ancillary services and peak shaving.
  • Massive Capacity Targets: Over 215 GWh installed by 2024, aiming for 720+ GWh by 2027

[🇦🇺] Australia: Market-Driven with Strong State Support

  • ARENA (Australian Renewable Energy Agency): Funds pilot and commercial BESS projects.
  • State-Level Programs:
    • Victoria: Battery rebates for households and businesses.
    • South Australia: Virtual Power Plant (VPP) programs using distributed BESS.
  • National Electricity Market (NEM): Allows BESS to participate in energy and ancillary service markets

🌍 Global Trends and Takeaways

According to the Eversheds Sutherland Global Regulatory Guide, over 20 countries now have:

  • Dedicated BESS licensing frameworks
  • Revenue models for grid-scale storage
  • Government subsidies or tax incentives
  • Mandates for renewable-plus-storage procurement

This global convergence reflects a shared recognition of BESS as essential for:

  • Grid stability
  • Renewable energy integration
  • Decarbonization goals
Location: India

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