The Tamil Nadu Green Energy Corporation Limited (TNGECL) has floated global e-tenders to set up clusters of Battery Energy Storage Systems (BESS) with a combined capacity of 500 MW/1000 MWh in the southern Indian state.

This is the first time the state is planning such units to meet power demand during peak hours.

The project will be implemented under a Build-Own-Operate (BOO) model with a two-hour discharge cycle, enabling the stored energy to be released as needed.

The BESS will be set up along the six substations in Tirunelveli, Tiruchy and Madurai. Thennampatty Substation, Anuppankulam SS, Ottapidaram SS and Vellalaviduthi would have BESS with a discharge capacity of 200 MWh each, and Kayathar SS and Karaikudi SS, 100 MWh each, according to a report by the news portal DT Next.

The union government has recently directed power distribution companies to store excess solar and wind energy generated during peak hours.

Under the central government's Viability Gap Funding scheme, around 30% of the capital cost for BESS or INR 270 million (USD 3 million) per 1 MW unit, whichever is lower, would be provided as financial support.