UPSC Prelims Practice Questions — Cabinet okays ₹14,500 cr. VGF scheme for large scale energy storage

Q1. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Under the grid-scale storage scheme approved in November 2026, the expected total investment in storage projects is several times the Viability Gap Funding outlay.
  2. Viability Gap Funding meets only part of a project's capital cost, with the remainder raised by developers and recovered through tariffs.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q2. Plant X is a battery storage system rated at 500 MW with 2,000 MWh of storage. Plant Y is a pumped storage plant rated at 250 MW with 2,000 MWh of storage. Consider the following statements: Which of the statements given above is/are correct?

  1. X and Y can hold the same amount of energy.
  2. X can sustain its full rated output for twice as long as Y.
  3. Only X can meet a sudden 400 MW shortfall entirely from its own output.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 and 3 only
  • D. 1 only

Q3. Consider the following facts: I. Pumped storage projects totalling 11,620 MW and 69,720 MWh were reported as under construction in India. II. The Viability Gap Funding scheme approved in 2026 supports 60 GWh of pumped storage and 30 GWh of battery storage. Which of the following inferences can be drawn from the above?

  1. The scheme will add twice as much pumped storage power capacity (in GW) as battery power capacity.
  2. The pumped storage projects under construction can, on average, run at full rated output for about six hours.
  3. If the scheme's pumped storage projects had the same average duration as those under construction, the 60 GWh would correspond to roughly 10 GW of pumped storage.
  • A. 1, 2 and 3
  • B. 1 only
  • C. 2 only
  • D. 2 and 3 only

Q4. As India adds more solar and wind capacity, it is also expanding grid-scale storage. Consider the following statements about the likely effects of adding storage: Which of the statements given above is/are correct?

  1. Storage reduces the total electricity that must be generated, because storage plants are net producers of energy.
  2. Storage charged with surplus solar output reduces the need to curtail renewable generation during periods of oversupply.
  3. Storage sited at the renewable generator end can help ease congestion on the transmission network.
  • A. 1, 2 and 3
  • B. 2 and 3 only
  • C. 1 only
  • D. 2 only

Q5. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. The 2026 Viability Gap Funding scheme supports more storage energy capacity (in GWh) from pumped storage than from battery storage.
  2. Battery storage projects are modular and can usually be built faster than pumped storage plants.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q6. In a power grid where solar plants supply a large share of electricity around midday, which period typically puts the greatest strain on flexible resources such as storage and peaking plants?

  • A. The hours just after sunset, when demand stays high but solar output falls away
  • B. The early hours before dawn, when demand is at its lowest of the whole day
  • C. The late morning hours, when solar output is rising and demand is also rising
  • D. The hours around noon, when demand is high and solar output is at its peak