Tamil Nadu Green Energy Corporation Limited (TNGECL) has initiated the bidding process for the development of six standalone battery energy storage systems (BESS) with a total capacity of 1,000 MWh (500 MW x 2 hours). These systems will provide on-demand power to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) to balance peak and off-peak electricity requirements. The selected BESS developers will establish the projects on a build-own-operate model, with TNPDCL serving as the end procurer.
The minimum bid size is set at 50 MW x 2 hours (100 MWh), with project sizes required to be quoted in multiples of this capacity. For a typical 50 MW/100 MWh project, approximately 7,000 square metres of land will be allocated to the developer. Under the viability gap funding (VGF) scheme, financial support of up to 30 per cent of the capital cost or Rs 27 million per MWh, whichever is lower, will be provided by the central government. This funding will be a non-recurring expenditure covered entirely by a central grant.
Additionally, TNPDCL will enter into a battery energy storage purchase agreement and manage the charging of the BESS to ensure operational efficiency. The deadline for bid submission is April 2, 2025.
