NTPC Vidyut Vyapar Nigam (NVVN), a wholly-owned subsidiary of NTPC, plans to begin commercial operations of 500 MWh of battery energy storage capacity soon, its chief executive officer Somes Bandyopadhyay said on Thursday.

Bandyopadhyay said NVVN also intends to commission an additional 500 MWh of capacity during the current financial year. The plans are part of the government’s scheme to support the development of 3,000 MWh of battery energy storage capacity through different modes.

The comments were made on the sidelines of the 18th India Coal Summit, organised by the Indian Chamber of Commerce in New Delhi. NVVN is involved in developing large-scale Battery Energy Storage Systems (BESS) across the country as India expands its electricity storage infrastructure.

A BESS uses batteries, either individually or more commonly in groups, to store electricity generated by power plants. The stored electricity can subsequently be supplied to the grid when demand rises or when renewable generation is unavailable.

Battery storage systems are increasingly being used to help utilities manage peak electricity demand and improve grid reliability. They can store power during periods of lower demand or high renewable energy generation and release it during peak-demand periods, supporting the integration of intermittent sources such as solar and wind power.

India is scaling up its BESS ecosystem through policy support and capacity additions as it seeks to strengthen the power grid and accommodate a growing share of renewable energy. NVVN’s planned projects are expected to contribute to the government’s broader effort to establish utility-scale storage facilities and improve flexibility in electricity supply.