Tamil Nadu Accelerates Clean Energy Transition with 1000 MWh Battery Storage Rollout – EQ
In Short : Tamil Nadu’s battery storage push gains ground as three firms win the tender for 1,000 MWh systems. NLC India Renewables, Bondada Engineering, and Oriana Power will deploy storage units to support the state’s renewable energy supply. The projects, to be completed in 18 months, aim to stabilize the grid and enhance power reliability through energy storage during peak demand.
In Detail : Tamil Nadu has taken a major step toward energy storage integration, with three companies winning a tender to develop 1,000 MWh of standalone Battery Energy Storage Systems (BESS). The tender, floated by Tamil Nadu Green Energy Corporation Limited (TNGECL), aims to harness and stabilize the state’s growing renewable energy capacity, which currently stands at around 19,000 MW from wind and solar sources.
NLC India Renewables, a subsidiary of NLC India Ltd, secured the largest share of the contract with a 500 MWh project. The company will install systems across three key substations—Ottapidaram, Anuppankulam, and Kayathar. This marks a significant expansion of NLCIL’s storage portfolio, building on their earlier experience managing an 8 MWh BESS in the Andaman Islands.
Bondada Engineering Ltd will develop 400 MWh of storage capacity, while Oriana Power will set up the remaining 100 MWh. All three projects will follow a Build-Own-Operate (BOO) model and were awarded through tariff-based competitive bidding under the Viability Gap Funding (VGF) scheme.
The energy stored in these systems will be dispatched during peak demand hours, helping to reduce grid imbalances and prevent power outages. With Tamil Nadu experiencing increasing variability in power supply due to high renewable penetration, the new BESS units are expected to significantly improve grid reliability and resilience.
Each company will sign a 12-year Battery Energy Storage Purchase Agreement (BESPA) with the state discom. According to TNGECL, the battery systems are expected to be fully operational and connected to the grid within the next 18 months, ensuring timely deployment in line with state energy goals.
This initiative marks one of the largest storage rollouts in India and reinforces Tamil Nadu’s leadership in clean energy transition. By pairing storage with renewables, the state is aiming for a more stable, reliable, and sustainable power future.
