In alignment with recent power sector reforms introduced by both the State and Central governments, the Tamil Nadu Green Energy Corporation (TNGECL) is set to establish six standalone Battery Energy Storage System (BESS) projects with a total capacity of 500 MW/1000 MWh. These projects will be developed through a tariff-based global competitive bidding process and will receive viability gap funding (VGF) support from the Central government.

The primary objective of the BESS installations is to optimize the utilization of renewable energy by storing surplus power and supplying it during peak demand hours. The systems, capable of two-cycle charging and discharging, will be strategically located near six substations across Tirunelveli, Tiruchy, and Madurai. Specifically, the substations at Thennampatty, Anuppankulam, Ottapidaram, and Vellalaviduthi will each have a discharge capacity of 200 MWh, while the facilities at Kayathar and Karaikudi will have a discharge capacity of 100 MWh each.

These storage systems are expected to play a crucial role in balancing the power grid by mitigating fluctuations in renewable energy supply. With the growing dependence on renewable energy sources, grid stability is often challenged, particularly during morning and evening peak demand periods when solar and wind energy generation may be insufficient. The BESS will address this issue by ensuring a steady power supply without the need for additional energy purchases.

The project is being implemented with financial assistance from the Union Ministry of Power, which will provide VGF covering up to 30 per cent of the capital cost or Rs 27 lakh per MWh, whichever is lower, under the state component.

As per the tender specifications, bidders have the flexibility to develop battery storage systems in increments of 50 MW. For every 50 MW installation, Tantransco will allocate 7,000 square meters of land to the selected bidder at a nominal annual lease charge of Rs 1 per project.

News source: DT Next