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Tamil Nadu Awards First 500 MWh Battery Storage Project to NLC India Renewables

Tamil Nadu has taken a major step toward strengthening its renewable energy infrastructure by awarding its first large-scale Battery Energy Storage System (BESS) project to NLC India Renewables Limited (NIRL). The contract, issued by Tamil Nadu Green Energy Corporation Limited (TNGECL), involves the development of three standalone BESS projects with a total capacity of 250 MW / 500 MWh. These systems will be located at the Ottapidaram, Annpankulam, and Kayathar substations (400/230/110 kV) in Tamil Nadu.

This award marks a significant milestone as the first project under Tamil Nadu’s dedicated energy storage policy and aligns with India’s broader renewable energy integration goals. The project will also benefit from the central government’s Viability Gap Funding (VGF) scheme, which offers financial support covering 30% of the capital cost. The BESS installations will enhance grid reliability, support peak load management, and aid in balancing the intermittency of solar and wind power sources.

With Tamil Nadu being one of India’s renewable energy leaders, this project positions the state at the forefront of energy storage deployment, ensuring a cleaner and more stable power supply while encouraging similar initiatives across the country.