Leh and Kargil may soon have grid-connected solar projects connected to battery energy storage system (BESS).

The proposal to set up a 14 MW solar project with aggregate battery storage capacity of 42 MWh has now received the President’s approval. Both Leh and Kargil will have a 7 MW solar project with battery storage of 21 MWh.

The projects will be developed on build own operate basis. The land for setting up of these solar projects will be facilitated by Ladakh Renewable Energy Development Agency (LREDA) and Kargil Renewable Energy Development Agency (KREDA).

The program will be implemented by Solar Energy Corporation of India (SECI) which will also act as a project management consultant for the entire project, including the process of  finalization of detailed project report, selection of solar project developer, project management till project testing, commissioning, and execution of the project by the project developer.

SECI will be responsible for the fund management, releasing of Viability Gap Funding and will also monitor the performances post commissioning of the projects. SECI will be paid 3 percent of the total VGF disbursed, as service charges. The project will have a fixed tariff of ₹2 (~$0.028)/kWh with VGF. The amount of VGF will be decided through competitive bidding. A maximum VGF support of ₹1,820 million (~$25.60 million) will be provided to set up the entire capacity.

The upper limit of VGF is ₹130 million (~$1.83 million) for 1 MW solar project with battery storage of 3 MWh. SECI will release 50 percent of VGF after the supply of equipment at project site and the remaining 50 percent of VGF will be given after the successful commissioning of the project.

Previously, in July 2018, SECI issued a tender for the development of two 1.5 MW (AC) solar power projects with battery energy storage system at Tangtse and Durbuk in Leh district of Jammu & Kashmir.