Tamil Nadu Transmission Corporation Ltd (Tantransco) has received the approval of the State power regulator to allow a right of use of its land, as well as lease the substation lands, at 1 per project/year to install battery energy storage systems (BESS).
The Union Power Ministry has assigned 1000 Megawatt-hour (Mwh) of BESS capacity to Tamil Nadu as part of State component of the Viability Gap Funding (VGF) scheme and Tamil Nadu Green Energy Corporation Ltd. proposed a capacity of 500 MW/1000 Mwh on standalone BESS.
In its proposal to the Tamil Nadu Electricity Regulatory Commission (TNERC), Tantransco suggested implementing the 1000 Mwh of BESS under the State Component of the VGF scheme in six substations, namely, Thennampatty, Anuppankulam, Ottapidaram, Vellalaviduthi, Kayathar and Karaikudi, with 500 MW/1000 Mwh total capacity.
It offered to deploy the scheme on the basis of the Build, Own, Operate model, whereby the project would be set up in its substations on a lease basis over a period of approximately 15 years. It is also suggested that a lease rent of 1 per project year be imposed till the lease period.
The Central Government shall offer Viability Gap funding (VGF) of up to 30 percent of BESS cost or 27 lakh per MWh, whichever is lesser, as part of the State Component. Tantransco said.
Only the surplus land not otherwise needed to carry out licensed transmission activities would be considered as the assets of Tantransco that would be utilized in the development of BESS Projects, it said.
“There will be no revenues out of the business conducted by utilization of the land for BESS Projects as the entire benefit of the activities is eventually accruing to the consumers and other users of the transmission system and the distribution system,” Tantransco said.
The Energy Storage System
The Energy Storage System (ESS) is critical in successfully integrating renewable energy into the grid and helping grid operators to deal with changes in demand and renewable energy supply.
Pumped storage systems
Pumped storage systems (PSP) are more time-consuming to execute and implement. The near-term integration of renewable energy would be best suited to BESS pending the completion of intended PSP capacity, according to the petition.
In the process of approving the plan, Tantransco had been instructed by the TNERC to carry out a grid connectivity study and technical feasibility study.
It also instructed Tantransco to sign a land lease agreement with the developers over a total of 15 years by incorporating the terms and conditions of handing over the land to Tantransco as it was later handed over to the service provider to install the BESS.
