Tamil Nadu Batteries Up: 1,000 MWh Storage Project Greenlit!

The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved Tamil Nadu Green Energy Corporation Ltd. (TNGECL)’s plan to procure 1,000 MWh of power from battery energy storage systems (BESS) to be installed at six substations operated by TANTRANSCO. The move supports Tamil Nadu’s broader strategy to integrate rising levels of wind and solar power while addressing grid variability and peak demand challenges.

The project is backed by the Union Government’s viability gap funding (VGF) scheme, which has allocated 1,000 MWh of storage capacity to the state, covering up to 30% of project costs. Following a competitive tender, four bidders participated, with Bondada Engineering emerging as the lowest bidder at ₹2,46,000 per MW per month. The BESS facilities will operate in two discharge cycles totaling 500 MW and are expected to significantly enhance grid stability and renewable energy management in Tamil Nadu.

News by Rahul Yelligetti.