Tamil Nadu Awards Major Battery Storage Contracts In Big Renewable Energy Grid Boost

Tamil Nadu has made key progress towards enhancing its renewable energy infrastructure after awarding contracts for a substantial 1,000 MWh battery storage facility. The Tamil Nadu Green Energy Corporation Ltd (TNGECL) announced the successful completion of its competitive tender process, and selecting three companies to develop the state's largest energy storage project, says a report by ET Auto.

Operational Structure

The battery energy storage systems will operate under a Build-Own-Operate (BOO) framework, awarded through a competitive tariff-based bidding mechanism. The projects are being developed as part of the state component within the Viability Gap Funding (VGF) scheme, designed to support infrastructure development in renewable energy sectors.

Who Are The Contract Winners

The largest portion of the project was awarded to NLC India Renewables Limited (NIRL), a fully-owned subsidiary of NLC India Limited, which secured the contract for a 500 MWh battery energy storage facility. Bondada Engineering Ltd received the second-largest allocation with a 400 MWh system, while Oriana Power was selected to develop a 100 MWh installation, the report added.

The combined storage capacity will enable the system to hold 100 million units of electricity, with the capability to release this stored energy across two operational cycles during periods of peak electricity demand.

TNGECL Managing Director Aneesh Sekhar outlined the project timeline, stating that the winning bidders must complete grid connection of their fully operational battery systems within 18 months of contract award.

NLC India Limited has revealed that their portion involves constructing three independent battery storage facilities with a total capacity of 250 MW/500 MWh. These installations will be strategically positioned at existing electrical substations rated at 400/230/110 kV in Ottapidaram, Anuppankulam, and Kayathar in Tamil Nadu.

Strategic Importance

Tamil Nadu's renewable energy landscape includes nearly 19,000 MW of installed wind and solar capacity, creating ideal conditions for large-scale battery storage deployment. 

State electricity officials from Tamil Nadu Power Development Corporation Limited (TNPDCL) explained that the battery storage infrastructure will capture surplus renewable energy generated during low-demand periods and release it when electricity consumption reaches peak levels.

According to TNPDCL representatives, this energy storage capability will significantly reduce grid instability issues, help prevent power outages, and improve the overall operational efficiency of Tamil Nadu's clean energy distribution network.