Tamil Nadu's Power Play: Storing Sunshine with BESS

The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a proposal from Tamil Nadu Transmission Corporation (TANTRANSCO) to lease surplus substation land to developers of Battery Energy Storage System (BESS) projects at a nominal rate.

In its order dated August 28, 2025, the Commission permitted TANTRANSCO to lease unused substation land at Re 1 per year for 15 years, granting developers the “Right of Use” to install BESS units. This move supports Tamil Nadu’s allocation of 500 MW/1,000 MWh of BESS capacity under the state’s Viability Gap Funding (VGF) scheme, implemented through Tamil Nadu Green Energy Corporation Ltd. (TNGECL).

TNERC emphasized that only land not essential to licensed transmission operations would be leased, ensuring no disruption to TANTRANSCO’s core functions. The strategic location near substations will enable efficient charging and discharging of energy, helping balance peak demand and facilitating greater renewable energy integration and grid stability in the state.

News by Rahul Yelligetti.