The Tamil Nadu state cabinet has approved the Battery Energy Storage System (BESS) Policy 2026 after detailed discussions, with the policy aimed at accelerating the installation of battery storage across power generation and transmission networks. It covers projects with a capacity of 1 MW and above and seeks to improve renewable energy utilisation while reducing the curtailment of electricity generated from renewable sources.

The policy recognises two categories of battery storage systems: standalone BESS and co-located BESS. Standalone BESS refers to independent systems with a capacity of more than 1 MW, which can be connected to transmission or distribution networks or to private consumer networks.

Standalone projects will be eligible for a 100 per cent waiver of applicable transmission and wheeling charges. The systems can be used to meet peak-hour demand, support grid operations and provide other services approved under the policy.

Co-located BESS refers to storage systems integrated with solar, solar-hybrid or other renewable energy projects with a capacity of more than 1 MW. These systems will store electricity produced by associated renewable energy plants and supply it during peak-demand periods or whenever required.

Co-located BESS projects linked to existing or new solar, wind or hybrid projects will also receive a 100 per cent waiver of applicable transmission and wheeling charges. The policy will apply to all BESS projects for which applications are submitted on or after the date of notification, as well as projects commissioned on or after April 1, 2027.

By covering both independent storage installations and systems paired with renewable energy projects, the policy establishes a common framework for deploying BESS across the state’s electricity network. The incentives are intended to support storage use during periods of peak demand and help renewable power reach the grid when it is needed.