Q. Consider the following statements:
1.Battery energy storage systems (BESS) are devices that enable energy from renewables, like solar and wind, to be stored and then released when the power is needed most.
2.Viability Gap Funding (VGF) is a mechanism used to support infrastructure projects that are both economically and financially feasible.
3.VGF is a guaranteed source of funding.
Which of the statements given above is/are correct?
Statement 1 is correct. BESS are devices that enable energy from renewables, like solar and wind, to be stored and then released when the power is needed most.
Statements 2 and 3 are incorrect. VGF is a financial tool used by the government or public authorities to promote and support infrastructure projects that are economically viable but not financially feasible due to high initial costs or low revenue expectations. VGF is not a guaranteed source of funding for infrastructure projects. Instead, it is a mechanism through which the government provide financial support to bridge the gap between the expected revenue of a project and its actual cost.