Prime Minister Narendra Modi has laid the foundation stone for a 250 MW/500 MWh Battery Energy Storage System (BESS) project in Chennai, Tamil Nadu, marking a step towards strengthening the state’s electricity grid and meeting rising power demand.
The project comprises three standalone battery energy storage units with a combined capacity of 250 MW/500 MWh. The facilities will be installed at substations in Ottapidaram, Anuppankulam and Kayathar, each operating at 400/230/110 kV.
The battery storage systems are designed to support two full charging and discharging cycles daily. This will enable them to help manage peak electricity demand and improve power availability during periods of high consumption.
The project was awarded to NLC India Renewables Limited (NIRL), a subsidiary of NLC India Limited, following a tender issued by Tamil Nadu Green Energy Corporation Limited (TNGECL) in June 2025. It represents NLC India’s first large-scale energy storage initiative.
Under the agreement, Tamil Nadu Power Distribution Corporation Limited (TNPDCL) will procure energy storage services from NIRL for 12 years through a Battery Energy Storage Purchase Agreement (BESPA). The long-term arrangement is expected to support grid reliability and meet the state’s evolving electricity requirements.
The project will be developed under the Build-Own-Operate model and was awarded through a tariff-based competitive bidding process. It will also receive financial assistance under the state component of the Viability Gap Funding (VGF) scheme.
The development comes amid growing interest in battery storage solutions to improve grid flexibility, manage peak loads and support the integration of renewable energy. By enabling energy to be stored and discharged when required, the project is expected to contribute to a more flexible and reliable power system in Tamil Nadu.
