Tamil Nadu releases three-year battery energy storage systems policy
The state aims to deploy 2.5 GW/10 GWh of battery energy storage capacity to support grid stability and renewable energy integration.
The Tamil Nadu government has released the Tamil Nadu Battery Energy Storage Systems (BESS) Policy 2026, which targets the deployment of 2.5 GW/10 GWh of storage capacity over three years, according to The Hindu.
Under the new policy, existing solar and wind renewable energy projects with a capacity of 1 MW or more will be encouraged to adopt BESS for grid support, peak management, or renewable energy integration.
For new solar or solar-hybrid renewable energy projects of at least 1 MW, installing BESS capacity of at least 10 per cent of the solar project's capacity will be mandatory if applied for after the policy notification or commissioned on or after April 1, 2027.
The policy applies to all BESS projects applied for after the notification date or commissioned on or after April 1 next year. Both standalone and co-located projects are eligible for a 100 per cent waiver on applicable transmission and wheeling charges.
The Tamil Nadu Power Distribution Corporation (TNPDC) will procure 2,500 MW/10,000 MWh of capacity from eligible projects during the first phase. The Tamil Nadu Green Energy Corporation Limited will serve as the State Nodal Agency to monitor implementation and operate a single window system.
The state currently has an installed renewable energy capacity of 29.8 GW, including 14.5 GW of solar and 11.6 GW of wind power. Tamil Nadu is presently developing four BESS projects, including a 500 MW/1,000 MWh project and a 375 MW/1,500 MWh project.