Tamil Nadu Tenders 1 GWh Battery Storage with VGF Support

20 Mar 2025 CW Team

Tamil Nadu Green Energy Corporation Ltd (TNGECL) has invited bids for the development of six standalone battery energy storage systems (BESS) with a total capacity of 1,000 MWh (500 MW x 2 hours). The systems will support Tamil Nadu Power Distribution Corp. Ltd (TNPDCL) by providing on-demand energy storage to manage peak and off-peak demand. Bidding closes on 2 April.

Government Support and Project Details Under the state’s viability gap funding (VGF) scheme for BESS development, the central government will provide up to 30% of the capital cost or ?27 lakh per MWh, whichever is lower. This funding will be a non-recurring expenditure, fully covered by a central grant.

The minimum bid size is 50 MW x 2 hours (100 MWh), and bids must be placed in multiples of this capacity. Each 50 MW/100 MWh project will be allocated approximately 7,000 sqm of land.

Build-Own-Operate Model The selected developers will establish the BESS on a build-own-operate (BOO) basis. TNPDCL, as the end procurer, will enter into a battery energy storage purchase agreement (BESPA) and oversee the charging of the BESS.

This initiative is expected to enhance grid reliability, support renewable energy integration, and stabilise Tamil Nadu’s power supply.

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