NLC India, through its subsidiary NLC India Renewables, has awarded Pace Digitek an engineering, procurement and construction contract to deploy a 250 Megawatt (MW)/500 Megawatt-hour (MWh) Battery Energy Storage System (BESS) in Tamil Nadu. The project is valued at nearly Rs 7.099 billion (bn) including GST. Pace Digitek will deliver the works through its energy storage division, Lineage Power, and will be responsible for end to end execution. The announcement reflects a major addition to the company portfolio in utility scale storage.

Installation will be executed on a turnkey basis across three TANTRANSCO substations at Ottapidaram, Annupankulam and Kayathar. Pace Digitek scope includes design, engineering, manufacture and supply of battery storage systems together with transportation, unloading, storage, erection, testing and commissioning. The supply of standard power transformers has been excluded from the contractor scope. The contract requires full commissioning of the entire 250 MW/500 MWh capacity within 12 months of the formal letter of award.

Pace Digitek will also provide long term operation and maintenance services for a period of 12 years after commercial operation. The firm will manage the battery assets under this O&M arrangement as specified in the contract. The project stems from an earlier initiative by the Tamil Nadu Green Energy Corporation under a build own operate model with viability gap funding. NLC India had floated a domestic EPC tender earlier in 2026 to select the implementation partner.

Stakeholders expect the project to support grid stability, manage peak electricity demand and balance intermittent renewable supply across the state. The scheme is designed to integrate with existing solar and wind capacity and to provide ancillary services as required. The execution timeline and the 12 year O&M commitment are intended to assure asset performance and operational readiness. The award underscores growing investment in utility scale storage and the acceleration of renewable integration efforts in India.