KSERC Approves Four Grid-Scale Battery Storage Projects in Kerala

The Kerala State Electricity Regulatory Commission (KSERC) has approved a proposal from the Kerala State Electricity Board (KSEB) to set up four grid-scale Battery Energy Storage Systems (BESS) at key substations across the state. The move is aimed at managing the growing surplus solar power and improving grid stability in Kerala.

The BESS units will be established at KSEB substations in Sreekantapuram (Alappuzha), Pothencode (Thiruvananthapuram), Mulleria (Kasaragod), and Areacode (Malappuram). Together, they will offer a combined capacity of 125 MW / 500 MWh.

Project-wise Capacity Breakdown

The planned BESS installations will have the following capacities: Sreekantapuram and Pothencode will each host systems of 40 MW / 160 MWh, while Mulleria will have a 15 MW / 60 MWh system, and Areacode will house a 30 MW / 120 MWh system.

These projects form part of Kerala’s broader strategy to integrate battery energy storage into its power infrastructure.

NHPC to Lead Implementation Under VGF Scheme

The National Hydroelectric Power Corporation (NHPC) has been nominated by the Union Ministry of Power as the Battery Energy Storage System Implementing Agency (BIA) for the project. The development will be carried out under the Viability Gap Funding (VGF) scheme, aimed at making BESS projects financially viable and scalable.

According to the approved plan, the selected developers will have 15 months to complete the projects from the date NHPC signs the implementation agreements. However, KSERC has advised both KSEB and NHPC to explore faster timelines and aim for early completion.

Tariff Approval and Next Steps

KSERC has also cleared the monthly capacity charges quoted by four project developers shortlisted through NHPC’s competitive bidding process. These developers will be responsible for building and operating the storage systems under long-term agreements.

The Commission has emphasised the strategic importance of these projects in addressing grid reliability, renewable energy integration, and peak load management in the state. 

Once operational, the BESS units are expected to significantly enhance Kerala’s ability to balance demand and supply during high solar output periods and reduce dependence on fossil-fuel-based peaking power.