CHENNAI: The Tamil Nadu Green Energy Corporation Limited (TNGECL) has requested the union government to sanction an additional fund of Rs 18 lakh per Megawatt (MW) for its Battery Energy Storage System (BESS) project. “The Ministry of Power has already approved setting up BESS units with a total capacity of 2,500 MW.
"In this, we have already allocated 1,000 MWh of BESS, unlocking annual savings of approximately Rs 90 crore and we are also in the process of finalising the bids for the remaining 1,500 MWh of BESS to be implemented under the ministry’s viability gap funding,” Aneesh Shekhar, Managing Director of TNGECL told TNIE.
In addition to this, the TNGECL is planning to add another 1,000 MW as the state has significant potential in renewable energy. Tamil Nadu has currently an installed capacity of 44 Gigawatt with renewables contributing 55% of the mix. Studies project that the state will require 13 GW of energy storage by 2035 to managing variability and ensure grid stability, he explained.
Aneesh said that the expansion is required due to the steady increase in solar and wind generation in the state. Many a times, power produced during non-peak hours goes unused because the grid cannot absorb it fully. With large-scale battery storage, Tamil Nadu will be able to store surplus green power and supply it during evening and night hours when demand is high.
Highlighting the role of Renewable Purchase Obligation (RPO), another senior official from TNGECL said that buying power from wind, solar, wind-solar hybrid and round-the-clock renewable sources should follow the tariff-based competitive bidding guidelines issued by the Ministry of Power.
With Tamil Nadu adding a large amount of green energy to its grid, thermal plants are being forced to frequently ramp up and ramp down their generation, which puts stress on the grid.
“To manage these challenges, energy storage systems will play an important role. They help in balancing the grid, storing extra renewable power when generation is high, and supplying it when demand rises. This will support smooth integration of renewable energy and help grid operators handle fluctuations in both demand and supply,” the official added.