NLC India Renewables Limited, a wholly owned subsidiary of NLC India Limited -- a Navratna PSU under the Ministry of Coal -- has been awarded a landmark 500 MWh Battery Energy Storage System (BESS) project by Tamil Nadu Green Energy Corporation Limited (TNGECL).
The award comprises the development of three standalone BESS projects with a combined capacity of 250 MW / 500 MWh, to be established at: 400/230/110 kV Ottapidaram Substation; 400/230/110 kV Annpankulam Substation; and 400/230/110 kV Kayathar Substation, all in Tamil Nadu.
According to a company statement, the projects will be executed under the Build-Own-Operate (BOO) model and were awarded through a tariff-based competitive bidding process under the State Component of the Viability Gap Funding (VGF) scheme.
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.
This pioneering initiative has significantly contributed to reducing diesel consumption on the island, enhancing energy reliability, and supporting the region's transition to clean, green power.
Under the current tender agreement, Tamil Nadu Power Distribution Corporation Limited (TNPDCL) will procure energy storage services from NIRL through a long-term Battery Energy Storage Purchase Agreement (BESPA) for 12 years, the company statement added.
This is the first large-scale BESS project to be undertaken by NLCIL and marks a major milestone in India's transition towards clean, dispatchable, and flexible power systems. It will help Tamil Nadu DISCOM: manage peak power demand efficiently; ensure grid stability and reliability; integrate intermittent renewable energy like solar and wind into the grid; and enable the shift from fossil-dominated systems to clean and responsive energy solutions.
This achievement takes NLCIL a step closer to its strategic vision of achieving 10 GW renewable capacity by 2030.
Prasanna Kumar Motupalli, CMD, NLC India Limited, stated: "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."
India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources, are seen as an avenue to reduce dependence on conventional sources of power. Green energy for climate mitigation is not just a focus area for India; it has gained momentum globally. At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge.
They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.