The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a proposal by Tamil Nadu Transmission Corporation (TANTRANSCO) to lease surplus substation land to developers of battery energy storage system (BESS) projects at a nominal rate.

In its 28 August, 2025 order, the regulator allowed TANTRANSCO to lease such land at Re one per year for 15 years, granting developers the “Right of Use” for setting up BESS units. Tamil Nadu has been allocated 500 MW/1,000 MWh of BESS capacity under the state’s viability gap funding (VGF) scheme through Tamil Nadu Green Energy Corporation (TNGECL).

TNERC clarified that only surplus land not required for licensed transmission operations would be leased, ensuring that TANTRANSCO’s transmission activities remain unaffected. Proximity to substations will allow efficient charging of storage systems and enable electricity withdrawal during peak demand, thereby strengthening Tamil Nadu’s renewable integration and grid stability efforts.