Prime Minister Narendra Modi laid the foundation stone for a 250 MW/500 MWh Battery Energy Storage System (BESS) project in Tamil Nadu on October 11, 2026. The project, located across substations at Ottapidaram, Anuppankulam and Kayathar, is intended to support renewable energy integration and improve power availability during periods of peak demand.

The BESS project was awarded to NLC India Renewables (NIRL), a subsidiary of NLC India, after a tender issued by Tamil Nadu Green Energy Corporation in June 2025. It is the first large-scale energy storage initiative undertaken by NLC India and will comprise three standalone units with a combined capacity of 250 MW/500 MWh.

Each unit will operate at substations with voltage levels of 400/230/110 kV. The systems are designed to complete two charging and discharging cycles each day, enabling them to manage peak electricity demand and provide additional energy during critical load periods. The arrangement is expected to strengthen the state’s grid infrastructure as renewable generation expands.

The project will follow a Build-Own-Operate model and was awarded through tariff-based competitive bidding. It will receive financial assistance under the state component of the Viability Gap Funding scheme. Tamil Nadu Power Distribution Corporation will procure storage services from NIRL for 12 years through a Battery Energy Storage Purchase Agreement.

Separately, the government is investing about Rs. 170 bn in port infrastructure at VOC Port in Thoothukudi. The facility is being developed as a major container port and green energy hub capable of accommodating ultra-large container vessels. The project is intended to expand shipping capacity, support industrial activity and strengthen Tamil Nadu’s position as a hub for transportation and clean energy. Together, the port and storage developments are expected to support the state’s wider renewable energy and infrastructure objectives.