Tamil Nadu Issues Standalone BESS Tender For 375 MWx4 Hrs Tender Under VGF

Tamil Nadu Green Energy Corporation Limited (TNGECL) has recently released a tender to develop standalone Battery Energy Storage System (BESS) projects. The tender seeks bids from developers to set up seven standalone BESS projects totalling 1,500 MWh, comprising 375 MW x 4 hours. The project will enable a complete 1.5-cycle charging and discharging per day in Tamil Nadu. It will provide “on-demand” energy under the Viability Gap Funding (VGF) scheme. It has sought online bids for the project from December 5, 2025, to December 22, 2025. 

TNGECL issued this tender after receiving interest from the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) to utilise energy storage systems on an “on-demand” basis. The energy from this project would be used to suit their requirements during peak and off-peak hours.

Project Capacity

Through this tender, TNGECL aims to select developers for 1,500 MWh BESS projects, offering a minimum bid size of 25 MW x 4 hours (100 MWh). These projects would be set up in the vicinity of identified substations, as per the distribution matrix below:

• Coimbatore: The BESS project will be connected to the Palladam substation (230/110 kV) with a 100 MWh capacity.

• Tirunelveli: The BESS project will be connected to the N. Subbaihpuram substation with a 100 MWh capacity.

• Trichy: It will have two 200 MWh BESS projects — one at the Thatchankurichi substation and another at the Thiruvarur substation.

• Coimbatore: This region will also have two projects: a 300 MWh BESS project near the Karamadai substation, and another 400 MWh project near the Anaikadavu substation (400/230 kV – 230 kV).

• Madurai: This region will have a 200 MWh project near the Thappagundu substation (400/110 kV – 110 kV).

Project Location

The total project capacity of 375 MW / 1,500 MWh will be located in the vicinity of designated substations of the STU network in Tamil Nadu.

Land allocation for the projects will be under the scope of TANTRANSCO. Land will be provided on a right-to-use basis to the BESS developer (BESSD) at an annual lease fee of Rs. 1 per project per year through a suitable agreement with TANTRANSCO, facilitated by TNGECL.

Project land details are enclosed in Annexure-E. Bidders discovered after the e-reverse auction will have the first right to select a location.

The BESPA will be valid for 15 years from the date of full commissioning of the project. Any extension beyond this period will be through mutual agreement between the BESSD and TNPDCL.

As per the Guidelines for the Viability Gap Funding (VGF) Scheme for the development of BESS supported through the Power System Development Fund (PSDF), VGF of Rs. 18 lakh per MWh will be provided by the Central Government to support a BESS capacity of 1,500 MWh in Tamil Nadu. The VGF will be a non-recurring expenditure and will be fully funded from the PSDF.