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TN Powers Up Grid with New Battery Storage Policy
3 Nov
Summary
- Policy targets 10 GWh battery storage by 2029.
- New solar projects must integrate 10% battery capacity.
- Investors receive 10-year waiver on transmission charges.
The Tamil Nadu government has unveiled the Tamil Nadu Battery Energy Storage Systems (BESS) Policy, 2026, setting an ambitious target of building 10 gigawatt-hours (GWh) of storage capacity by 2029. This policy aims to significantly improve the state's power grid infrastructure, enhance energy security, and reduce overall power purchase expenses.
A key provision of the policy requires any new solar or solar-hybrid project with a capacity of 1 megawatt or more, commissioned on or after the policy's notification, to include BESS capacity equivalent to at least 10 percent of its solar capacity. This integrated system must also support a four-hour discharge duration. The state's power distribution corporation plans to procure 2,500 MW/10,000 MWh of storage capacity in its initial phase through competitive bidding.
This strategic move addresses challenges Tamil Nadu faces with grid integration, particularly during evening hours when power deficits occur, despite its substantial solar and wind capacity. The BESS policy will enable the capture of surplus solar energy during the day for release during peak demand times.
To ensure system reliability, BESS projects must maintain 95 percent annual availability and be operational during critical peak demand windows. Developers are also mandated to use indigenous Energy Management System (EMS) platforms to bolster cybersecurity. To foster investment, eligible projects commencing operations within the policy period will benefit from a complete waiver on transmission and wheeling charges for a decade.
