TNGECL Awards 1,000 MWh BESS Tender To NLC, Bondada, Oriana

TNGECL Awards 500 MW/1,000 MWh BESS Projects To NLC, Bondada & Oriana

Tamil Nadu Green Energy Corporation Ltd (TNGECL) has awarded contracts for its 500 MW/1,000 MWh standalone Battery Energy Storage System (BESS) project to NLC India Renewables Ltd (NIRL), Bondada Engineering, and Oriana Power. The auction, issued in March 2025, concluded within three months.

The winning bidders will develop the BESS projects across six locations in Tamil Nadu under a build-own-operate (BOO) model. NLC India Renewables, a subsidiary of state-run NLC India Ltd (NLCIL), won the largest share — a 250 MW/500 MWh project at a tariff of ₹2,48,000 per MW per month. Bondada Engineering secured a 200 MW/400 MWh project at ₹2,46,000/MW/month, while Oriana Power won a 50 MW/100 MWh project at the same tariff.

NLC’s contract includes the development of three standalone BESS units — each at Ottapidaram, Anuppankulam, and Kayathar — connected to substations operating at 400/230/110 kV.

About the Project

The TNGECL tender includes six standalone BESS projects totaling 1,000 MWh (500 MW x 2 hours) to provide “on-demand” energy storage. It also offers a Viability Gap Funding (VGF) component, to be administered by Tamil Nadu Power Distribution Corporation Ltd (TNPDCL), along with provisions for energy for charging and discharging as needed.

The winning bidders are eligible for Central Government support under the State Component — either up to 30% of capital cost or ₹27 lakh per MWh, whichever is lower. Developers will receive ₹27 lakh/MWh or 30% of the project capital cost as VGF.

Comparison With Previous BESS Tenders

TNGECL’s tender did not beat the tariffs discovered in NTPC’s NVVN-led 500 MW/1,000 MWh BESS auction in Rajasthan. In that round, Solar19 Cleantech Ltd won a 50 MW project at ₹2,16,000/MW/month, the lowest tariff recorded in the segment.

Other winners in the Rajasthan tender included Rays Power Experts, which secured 50 MW at ₹2,18,700/MW/month, Stockwell Solar Services has secured a 225 MW project at ₹2,18,998/MW/month, whereas Oriana Power has won 225 MW at ₹2,18,999/MW/month and INOX Renewable Energy secured 225 MW portion at ₹2,19,000/MW/month. The latest award further boosts Oriana Power’s position in the BESS segment.

Meanwhile, Gujarat Urja Vikas Nigam Ltd (GUVNL) recently awarded 500 MW/1,000 MWh BESS projects to Solarworld Energy Solutions Ltd and HG Infra Engineering Ltd at higher tariffs of ₹2.80–₹2.85 lakh per MWh per month. According to the results, Solarworld secured 200 MW at ₹2,80,000/MWh/month, and HG Infra won 300 MW at ₹2,85,600/MWh/month. Industry analysts noted that the recent drop in tariffs within the BESS auctions signals heightened competition and technological maturity in India’s battery storage market.