VRFB energy storage project financing options in India 2026

What is Viability Gap Funding (VGF) scheme for battery energy storage systems?

The Union Cabinet approved the Viability Gap Funding (VGF) Scheme for Battery Energy Storage Systems (BESS) on 6th September 2023, to support the development of BESS. As per the Scheme, VGF support will be provided for BESS approved during 2023-26.

What does VRFB stand for?

The capital raise signals growing investor interest in vanadium redox flow battery (VRFB) technology to support grid stability and enable long-duration renewable energy integration.

Why is vflowtech launching a Gigafactory in India?

VFlowTech Raises USD 20.5 Mn to Power India's Clean Energy Future The fresh capital will be deployed to scale VFlowTech's 100 MWh manufacturing plant in India into a full-fledged Gigafactory and to accelerate the deployment of its vanadium redox flow batteries (VRFB) across the country.

Why is vflowtech investing in India?

The company will also invest in vanadium recycling and electrolyte manufacturing in India to build a robust domestic supply chain. "India represents one of the most exciting opportunities for energy transition," said Anand Anupam, Chief Commercial Officer of VFlowTech.

Is vflowtech a good fit for a clean power future?

With its ambitious renewable energy targets and increasing need for grid stability, coupled with the policy momentum, our long-duration storage and AI-integrated systems are a perfect fit for enabling a reliable, 24/7 clean power future,” said Anand Anupam, Chief Commercial Officer of VFlowTech.

How much VGF will be disbursed after financial closure?

However, with falling BESS costs, the VGF amount reduced from ₹96 lakh per MWh (estimated in 2023-24) to ₹46 lakh per MWh or 30% of capital cost, whichever is lower. As a result, the budgetary allocation was revised from ₹96 Crore to ₹46 Crore. As per scheme guidelines, 10% of VGF is to be disbursed after financial closure.