NLC India Renewables Limited (NIRL) has achieved a milestone in boosting clean and dependable power supply in Tamil Nadu by securing the first-of-its-kind contract to establish a 500 MWh Battery Energy Storage System (BESS).
The Tamil Nadu Green Energy Corporation Limited (TNGECL) project turns out to be the first large-scale battery storage system that will emerge in Tamil Nadu following the state developing an exclusive policy on energy storage systems.
BESS will receive financial support of 30 percent of the capital cost under the Viability Gap Funding (VGF) Scheme under the central government. The central government included Tamil Nadu among six high-renewable-energy states—along with Gujarat, Karnataka, Rajasthan, Telangana, and Maharashtra—to receive BESS capacities under the initiative.
Officials said the battery system will store excess solar and wind energy—both seasonal sources—and release it whenever needed, especially during nighttime or cloudy days.
The award covers the development of three independent BESS projects with a total capacity of 250 MW / 500 MWh. NLC India Renewables Limited will commission these at the 400/230/110 kV substations in Ottapidaram, Annpankulam, and Kayathar in Tamil Nadu.
An official of senior position in TNGECL opined that mass tapping of renewable sources of energy such as solar and wind has its own dynamics, like the technology of storing power in lean seasons and handling the power grid of the state, as these sources are not quite readily available in all seasons.
“Since renewable energy is not steady all the time, we are facing integration issues in the grid. To make better use of the existing transmission lines even when solar or wind power is not available, battery energy storage systems (BESS) are the best solution.”
– The officials.
He further said that storing solar power during the day will help supply clean electricity during evening hours when power demand is high.
“This will reduce costs and also support clean energy usage beyond daylight hours, helping the state move towards low-carbon growth.”
– The officials.
TNGECL has scheduled to establish 1,000 MWh of battery storage in some of its substations in a State-Viability Gap Funding (VGF) scheme. During the first phase, there is a 500 MWh BESS project that is to be granted. The target is currently underway to establish 4,000 MWh of battery storage in Tamil Nadu during the next years.
NLC India will undertake the projects under the Build-Own-Operate (BOO) model, having secured the awards through a tariff-based competitive bidding process under the State Component of the Viability Gap Funding.
As per the latest tender agreement, TN Power Distribution Corporation Limited shall purchase energy storage services from NIRL under a long-term Battery Energy Storage Purchase Agreement of 12 years.
PowerPoints
Model Build-Own-Operate. It has the total capacity of 250 MW / 500 MWh (2 full charging/discharging cycles per day), and the length of the service is 12 years.
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