Tamil Nadu plans six battery storage system units of 500 MW to ensure cheap power at peak hours
Aimed at ensuring efficient utilisation of power generated through renewable sources, the proposed BESS, with complete two-cycle charging and discharging, would come up in the vicinities of six substations in Tirunelveli, Tiruchy and Madurai.
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CHENNAI: In tune with the recent power sector-related reforms initiated by the State government and the Centre, the Tamil Nadu Green Energy Corporation Ltd (TNGECL) will set up six standalone Battery Energy Storage System (BESS) projects, totalling 500 MW/1000 MWh. It will be developed under a tariff-based global competitive bidding process, with viability gap funding (VGF) support from the Centre.
Aimed at ensuring efficient utilisation of power generated through renewable sources, the proposed BESS, with complete two-cycle charging and discharging, would come up in the vicinities of six substations in Tirunelveli, Tiruchy and Madurai. Thennampatty Substation, Anuppankulam SS, Ottapidaram SS and Vellalaviduthi SS would have BESS with a discharge capacity of 200 MWh each, and Kayathar SS and Karaikudi SS, 100 MWh each.
“BESS is necessary to address the challenge of increased share of renewable energy (RE) by storing excess energy when not needed and supplying it during peak demand periods. As reliance on renewable energy increases, the grid experiences stress during evening and morning peaks when sufficient RE is not available, necessitating additional power purchases. The BESS plays a vital role in successfully integrating RE into the grid and assisting grid operators in managing these fluctuations in demand and RE supply,” the official said.
The BESS project has been taken up in the State under the VGF provided by the Union Ministry of Power. VGF of up to 30 per cent of the capital cost of the BESS or Rs 27 lakh per MWh, whichever is lower, would be provided by the central government under the state component.
According to the tender document, the bidders can choose to set up the battery storage system in multiples of 50 MW. For a 50 MW battery system, Tantransco will allocate 7,000 sqm of land to the winning bidder at an annual lease charge of Rs 1 per project per year.
