NLC India Secures 500 MWh Energy Storage Project in Tamil Nadu

NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited (NLCIL), has been awarded a 500 MWh Battery Energy Storage System (BESS) project by Tamil Nadu Green Energy Corporation Limited (TNGECL). The development marks the first large-scale energy storage initiative for NLCIL.

The awarded contract includes the development of three standalone BESS units with a combined capacity of 250 MW/500 MWh. These will be installed at three strategic substations in Tamil Nadu - Ottapidaram, Anuppankulam, and Kayathar - each operating at 400/230/110 kV.

The systems are designed to support two full charging and discharging cycles daily, enabling them to manage peak power demand and improve energy availability during critical load periods.

Implementation Model and Funding

The project will follow a Build-Own-Operate (BOO) model and was awarded through a tariff-based competitive bidding process. It will receive financial assistance under the State component of the Viability Gap Funding (VGF) scheme.

As part of the agreement, Tamil Nadu Power Distribution Corporation Limited (TNPDCL) will procure the energy storage services from NIRL for a period of 12 years through a Battery Energy Storage Purchase Agreement (BESPA). This long-term arrangement is expected to ensure reliable support for Tamil Nadu’s grid infrastructure and energy needs.

Strategic Significance for the Energy Sector

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. The project was meant to reduce diesel usage and improve energy reliability on the island. The new Tamil Nadu project builds upon that success on a much larger scale.

Commenting on the milestone, Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited, said, “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.”

NLCIL has a goal of achieving 10 GW of renewable energy capacity by 2030. NLCIL was the first CPSU in the country to establish 1 GW of Renewable energy projects in the country. NIRL recently also signed a PPA with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for a 810 MW Solar Power Project.