TNERC clears land lease for battery storage projects at six Tantransco substations

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has permitted the Tamil Nadu Transmission Corporation (Tantransco) to lease land for substations at six locations for the installation of grid-scale battery energy storage systems (BESS) with a combined capacity of 500 MW/1,000 MWh.

The approved sites are Thennampatty, Anuppankulam, Ottapidaram, and Vellalaviduthi (all 100 MW/200 MWh), and Kayathar and Karaikudi (both 50 MW/100 MWh). The land will be leased to private developers at a nominal charge of Re 1 per project per year for 15 years.

The projects are to be developed under the viability gap funding (VGF) scheme of the Power Ministry. Tamil Nadu has been allotted 1,000 MWh of storage capacity under the State component of the scheme. The Tamil Nadu Green Energy Corporation Limited (TNGECL) will oversee implementation.

Noting how large-scale renewable energy integration has placed stress on the State's grid, the commission said storage facilities were essential for balancing demand and supply. While pumped storage projects are being pursued, their longer gestation period makes BESS a more immediate solution, it observed.

Approving the lease arrangement, it directed Tantransco to ensure technical feasibility, grid connectivity studies, and compliance with environmental and safety norms. The lease agreements must specify the return of land to Tantransco after the project period.

The order emphasised that the storage facilities should not hinder Tantransco's transmission business or affect substation capacity. Necessary State government approvals must also be secured before execution of agreements, it added.