NLC bags 500MWh battery energy storage project in Tamil Nadu

CHENNAI: The renewables arm of the NLC India Limited (NLCIL), has bagged the 500 MWh Battery Energy Storage System (BESS) project by Tamil Nadu Green Energy Corporation Limited.

NLC India Renewables Limited (NIRL), a wholly owned subsidiary of the Navratna PSU, will set up three standalone BESS facilities, with a combined capacity of 250 MW/500 MWh, at Ottapidaram, Annpankulam, and Kayathar substations in the State. The project will be executed under the build-own-operate (BOO) model and was awarded through a tariff-based competitive bidding process under the State component of the Viability Gap Funding (VGF) scheme.

The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) will procure energy storage services from NIRL through a 12-year battery energy storage purchase agreement (BESPA). The project allows for two full charging and discharging cycles per day and is aimed at enhancing grid stability, integrating renewable energy, and managing peak demand.

This is the first large-scale BESS initiative for NLCIL. Earlier, it had commissioned an 8 MWh BESS integrated with a 20 MW solar plant in the Andaman Islands, which helped reduce diesel usage and improve energy reliability.

Prasanna Kumar Motupalli, chairman and managing director of the PSU, said the project marks NLCIL’s transition from a lignite-based utility to a leader in clean energy, and aligns with its goal of achieving 10 GW renewable capacity by 2030, supporting India’s net-zero and energy security targets.