CHENNAI: After detailed discussions, the state cabinet approved the Battery Energy Storage System (BESS) Policy 2026 on Thursday. The policy targeting 1 MW and above projects aims to speed up the installation of BESS across power generation and transmission networks, improve the utilisation of renewable energy and reduce the wastage of power (curtailment) generated from renewable sources.
The policy, accessed by TNIE, covers two categories of battery storage systems - standalone BESS and co-located BESS.
Standalone BESS refers to independent battery storage systems with a capacity of more than 1 MW. These systems can be connected to transmission or distribution networks or private consumer networks.
They will be eligible for a 100% waiver of applicable transmission and wheeling charges. These standalone BESS can be used to meet peak-hour demand, support grid operations and provide other approved services.
Co-located BESS refers to battery storage systems integrated with solar, solar-hybrid or other renewable energy projects with a capacity of more than 1 MW. These systems store electricity generated by the associated renewable energy plants and supply it during peak-demand hours or when required.
Co-located BESS projects in existing or new solar, wind or hybrid projects will be eligible for a 100% waiver of applicable transmission and wheeling charges.
The policy will apply to all BESS projects for which applications are submitted on or after the date of notification, as well as projects commissioned on or after April 1, 2027.