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TNERC Approves TANTRANSCO’s Plan to Lease Substation Land for 1 GWh Battery Storage

The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a proposal by the Tamil Nadu Transmission Corporation (TANTRANSCO) to lease surplus land at six substations to private developers for installing battery energy storage systems (BESS). The land will be leased at a nominal charge of Rs1 per project annually for 15 years. This initiative will help establish 1,000 MWh of storage capacity under the central government’s Viability Gap Funding (VGF) program, implemented in the state through Tamil Nadu Green Energy Corporation (TNGECL).

TANTRANSCO emphasized that Tamil Nadu, with nearly 24 GW of renewable capacity, faces grid challenges due to the variability of solar and wind power. While pumped storage is being promoted, it has long execution timelines. BESS offers an immediate solution to manage fluctuations, stabilize the grid, and support renewable energy integration.

The approved projects include five installations of 100 MW/200 MWh each at substations in Thennampatty, Anuppankulam, Ottapidaram, Vellalaviduthi, Kayathar, and Karaikudi. Only surplus land will be leased, ensuring transmission operations remain unaffected.

TNERC allowed the proposal under Sections 17 and 41 of the Electricity Act, noting it does not compromise licensed transmission activities and serves public interest. Conditions include grid feasibility studies, strict environmental and safety compliance, adherence to state and central policies, and return of land to its original state after lease expiry. The Commission highlighted that the arrangement prioritizes consumer benefit and renewable integration rather than profit-making.