Tamil Nadu Green Energy Corporation Ltd (TNGECL) has launched a major initiative to strengthen the state’s power infrastructure by inviting bids for the development of six standalone battery energy storage systems (BESS) with a total capacity of 1,000 MWh (500 MW x 2 hours). The project is designed to enhance grid reliability, facilitate renewable energy integration, and ensure a stable power supply for Tamil Nadu Power Distribution Corp. Ltd.
Strategic Government Support for Energy Storage
Under India’s viability gap funding (VGF) scheme, the central government will provide up to 30% of the capital cost or ₹27 lakh per MWh, whichever is lower. This funding, covered entirely by a central grant, is a crucial step in accelerating battery energy storage adoption and reducing financial barriers for developers.
Project Structure and Bidding Details
Bidding Deadline: 2 April 2025
Minimum Bid Size: 50 MW x 2 hours (100 MWh)
Land Allocation: Each 50 MW/100 MWh project will receive approximately 7,000 sqm of land.
Capacity Increments: Bids must be placed in multiples of the minimum capacity.
Build-Own-Operate Model & Long-Term Procurement
The selected developers will establish the battery storage systems under a Build-Own-Operate (BOO) model, ensuring long-term efficiency and performance. TNPDCL, as the designated end procurer, will enter into a Battery Energy Storage Purchase Agreement (BESPA) to manage the charging and utilization of the storage assets effectively.
Strengthening Tamil Nadu’s Renewable Energy Ecosystem
As one of India’s leading states in renewable energy adoption, Tamil Nadu is taking proactive steps to address grid fluctuations and peak demand challenges. The deployment of large-scale BESS will enable the state to store surplus renewable energy generated during off-peak hours and dispatch it during high-demand periods, improving grid stability and reducing reliance on fossil fuels.
This initiative marks a significant milestone in India’s energy transition, reinforcing the state’s leadership in green energy while fostering private sector participation in battery storage deployment.
