The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the Tamil Nadu Green Energy Corporation’s (TNGECL) purchase of 1,000 MWh of power from battery energy storage systems (BESS) located at six substations of Tamil Nadu Transmission Corporation.

This approval comes as part of a broader effort to integrate renewable energy smoothly into the grid, addressing challenges due to increasing wind and solar energy variability. TNGECL had sought permission to procure power from utility-scale BESS, with a focus on meeting peak demand and reducing grid stress. The union government’s viability gap funding (VGF) program allocated 1,000 MWh to Tamil Nadu, providing up to 30 percent of project costs as grants.

After conducting a tender, TNGECL reported that four bidders participated, with Bondada Engineering emerging as the lowest bidder at Rs 2,46,000 per MW/month. The facility will be developed in two discharge cycles, covering 500 MW, and is expected to significantly support grid stability and renewable energy integration in the state.