NLC India’s Renewable Arm Wins 500 MWh Battery Energy Storage Project in Tamil Nadu
NLC India Limited was the first Central Public Sector Undertaking (CPSU) to commission an 8 MWh Battery Energy Storage System (BESS) at Andaman, integrated with a 20 MW solar power project.
Representational Image: Credit Canva
NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited (NLCIL) — a Navratna Public Sector Undertaking under the Ministry of Coal, Government of India — has been awarded a landmark 500 MWh Battery Energy Storage System (BESS) project by Tamil Nadu Green Energy Corporation Limited (TNGECL).
The award comprises the development of three standalone BESS projects with a combined capacity of 250 MW / 500 MWh, to be established at:
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400/230/110 kV Ottapidaram Substation
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400/230/110 kV Annpankulam Substation
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400/230/110 kV Kayathar Substation, all in Tamil Nadu.
The projects will be executed under the Build-Own-Operate (BOO) model and were awarded through a tariff-based competitive bidding process under the State Component of the Viability Gap Funding (VGF) scheme.
NLC India Limited was the first Central Public Sector Undertaking (CPSU) to commission an 8 MWh Battery Energy Storage System (BESS) at Andaman, integrated with a 20 MW solar power project. This pioneering initiative has significantly contributed to reducing diesel consumption on the island, enhancing energy reliability, and supporting the region’s transition to clean, green power.
Under the current tender agreement, Tamil Nadu Power Distribution Corporation Limited (TNPDCL) will procure energy storage services from NIRL through a long-term Battery Energy Storage Purchase Agreement (BESPA) for 12 years.
Salient Features of the Project:
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Total Capacity: 250 MW / 500 MWh (two full charging/discharging cycles per day).
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Model: BOO (Build-Own-Operate).
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Tenure: 12 years.
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Usage: “On-demand usage” by the state discom, enhancing flexibility in grid operations.
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Technology: Advanced battery energy storage, promoting grid reliability and renewable integration.
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This is the first large-scale BESS project to be undertaken by NLCIL and marks a major milestone in India’s transition towards clean, dispatchable, and flexible power systems. It will help Tamil Nadu DISCOM:
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Manage peak power demand efficiently.
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Ensure grid stability and reliability.
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Integrate intermittent renewable energy like solar and wind into the grid.
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Enable the shift from fossil-dominated systems to clean and responsive energy solutions.
This achievement takes NLCIL a step closer to its strategic vision of achieving 10 GW renewable capacity by 2030, aligning with India’s net-zero ambitions and energy security goals.
CMD’s Statement:
Shri Prasanna Kumar Motupalli, CMD, NLC India Limited, stated:
“This landmark project is a testament to NLCIL’s evolution from a lignite-based PSU to a leader in India’s clean energy transformation. The award of the 500 MWh BESS from TNGECL positions us at the forefront of energy storage innovation in the country. We remain committed to building a sustainable and flexible power ecosystem that supports India’s decarbonisation goals.”
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