NLC India Renewables Secures 500 MWh Battery Energy Storage Project in Tamil Nadu

Chennai, Jun 23 (KNN) In a significant boost for clean energy in Tamil Nadu, NLC India Renewables Ltd (NIRL), the renewable arm of state-owned NLC India Limited, has been awarded a pioneering Battery Energy Storage System (BESS) project.

The Letter of Award was issued by Tamil Nadu Green Energy Corporation Ltd (TNGECL) for three standalone BESS installations, with a combined capacity of 250 MW and 500 MWh.

This project marks Tamil Nadu’s first large-scale deployment of BESS infrastructure under its new policy framework. Strategically located at the 400/230/110 kV substations at Ottapidaram, Annpankulam, and Kayathar, these battery stations will support two full charge–discharge cycles daily.

Funded partly through the central government’s Viability Gap Funding (VGF) scheme, which covers 30% of capital costs, the project was awarded via a tariff-based competitive bid under the State Component of the VGF program. 

Energy produced will be purchased by Tamil Nadu Power Distribution Corporation Limited (TNPDC) under a 12-year Battery Energy Storage Purchase Agreement (BESPA).

Officials note that large battery systems will help stabilise the grid by storing surplus solar and wind energy—intermittent by nature—and supplying it during peak demand or low-generation periods such as night or cloudy weather. 

This aligns with NLC India’s broader strategy to boost renewable capacity to 10 GW by 2030.

Beyond enhancing grid flexibility, the project supports Tamil Nadu’s ambition to develop 1,000 MWh of battery storage under its VGF scheme, with plans for expansion to 4,000 MWh in the coming years.

As NLCIL transitions from lignite mining to clean energy, this initiative underscores its evolving role in India's decarbonisation journey.

(KNN Bureau)