+
TNGECL Seeks Higher Funding For Battery Storage Expansion
POWER & RENEWABLE ENERGY

TNGECL Seeks Higher Funding For Battery Storage Expansion

Tamil Nadu Green Energy Corporation Limited (TNGECL) has sought approval from the Union government for additional funding of Rs 1.8 million per MW for its battery energy storage system projects. The Ministry of Power has already cleared the setting up of BESS units with a total capacity of 2,500 MW.

According to TNGECL Managing Director Aneesh Shekhar, 1,000 MWh of battery storage capacity has already been allocated under the programme, delivering annual savings of around Rs 900 million. The corporation is currently in the process of finalising bids for the remaining 1,500 MWh of storage capacity to be implemented under the ministry’s viability gap funding framework.

In addition, TNGECL is planning to add another 1,000 MW of battery storage capacity, citing Tamil Nadu’s strong renewable energy potential. The state currently has an installed power capacity of 44 GW, with renewables accounting for about 55 per cent of the energy mix. Studies indicate that Tamil Nadu will require nearly 13 GW of energy storage capacity by 2035 to manage variability and ensure grid stability.

Shekhar said the expansion is necessary due to the steady rise in solar and wind generation. During non-peak hours, a significant portion of renewable power remains unutilised as the grid is unable to absorb the surplus. Large-scale battery storage would allow excess green power to be stored and supplied during evening and night-time peak demand periods.

Highlighting the role of Renewable Purchase Obligations, a senior TNGECL official said procurement of power from wind, solar, hybrid and round-the-clock renewable sources must follow tariff-based competitive bidding guidelines issued by the Ministry of Power.

With increasing renewable capacity being added to the grid, thermal power plants are being required to ramp generation up and down more frequently, placing stress on grid operations. Energy storage systems, the official said, will be critical in balancing supply and demand, storing surplus renewable power and ensuring smoother integration of clean energy into the grid.

Tamil Nadu Green Energy Corporation Limited (TNGECL) has sought approval from the Union government for additional funding of Rs 1.8 million per MW for its battery energy storage system projects. The Ministry of Power has already cleared the setting up of BESS units with a total capacity of 2,500 MW. According to TNGECL Managing Director Aneesh Shekhar, 1,000 MWh of battery storage capacity has already been allocated under the programme, delivering annual savings of around Rs 900 million. The corporation is currently in the process of finalising bids for the remaining 1,500 MWh of storage capacity to be implemented under the ministry’s viability gap funding framework. In addition, TNGECL is planning to add another 1,000 MW of battery storage capacity, citing Tamil Nadu’s strong renewable energy potential. The state currently has an installed power capacity of 44 GW, with renewables accounting for about 55 per cent of the energy mix. Studies indicate that Tamil Nadu will require nearly 13 GW of energy storage capacity by 2035 to manage variability and ensure grid stability. Shekhar said the expansion is necessary due to the steady rise in solar and wind generation. During non-peak hours, a significant portion of renewable power remains unutilised as the grid is unable to absorb the surplus. Large-scale battery storage would allow excess green power to be stored and supplied during evening and night-time peak demand periods. Highlighting the role of Renewable Purchase Obligations, a senior TNGECL official said procurement of power from wind, solar, hybrid and round-the-clock renewable sources must follow tariff-based competitive bidding guidelines issued by the Ministry of Power. With increasing renewable capacity being added to the grid, thermal power plants are being required to ramp generation up and down more frequently, placing stress on grid operations. Energy storage systems, the official said, will be critical in balancing supply and demand, storing surplus renewable power and ensuring smoother integration of clean energy into the grid.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code