The Tamil Nadu Green Energy Corporation Limited (TNGECL) floated global e-tenders to set up clusters of Battery Energy Storage Systems (BESS) with combined capacity of 500 MW and 1,000 MW in the state.

This is the first time the state is planning such facilities, which is expected to help significantly in reducing its reliance on private power purchase to meet demand during peak hours.

Annually, the utility spends nearly Rs 60,000 crore on private power purchase. Presently, the surplus power generated by solar and wind facilities goes unutilised if the power utilities are unable to evacuate the power at the right time.

While the move is in line with the recent power sector-related policies released by Tamil Nadu, the push also came from the union government, directing all power distribution companies (discoms) to store excess solar and wind energy generated during peak production hours. Under the centre’s Viability Gap Funding (VGF) scheme, 30% of the capital cost for BESS or Rs 27 crore per 1 MW unit, whichever is lower, would be provided as financial support.