Kerala is set to launch its first grid-scale battery energy storage system (BESS) at the 220 kV substation in Mylatti, Kasaragod. The landmark 125 MW/500 MWh project is being implemented by Kerala State Electricity Board (KSEB) in partnership with Solar Energy Corporation of India (SECI), and executed by JSW Neo Energy.

The Ministry of Power has sanctioned Rs 135 crore under the viability gap funding (VGF) scheme to support the initiative. Power Minister K Krishnankutty was present at the contract signing last week, marking a major milestone in the state's renewable energy journey. The BESS project aims to store surplus solar power generated during off-peak hours and discharge it during periods of peak demand, significantly improving grid stability and reducing the need for costly power purchases.

“Once operational, the system can provide up to four hours of stored energy daily, marking a significant innovation in state's power infrastructure,” officials said.

Scheduled for commissioning in 18 months, the project comes with an incentive of Rs 8.4 crore for early completion, targeting readiness before the next summer peak. It will operate on a public-private partnership (PPP) model, eliminating upfront capital expenditure by KSEB or the Kerala government. 

Encouraged by the Mylatti project, the Central government has approved a second BESS initiative for the state, to be implemented by NHPC with a similar Rs 135 crore VGF support. NHPC has already issued tenders for four new substations - Sreekandapuram, Pothencode, Areekode, and Mulleria, each contributing to Kerala’s sustainable power future with a combined capacity of 125 MW/500 MWh.