CHENNAI: In a major push towards efficient utilisation of power, especially power generated through renewable sources, the Tamil Nadu Green Energy Corporation Limited (TNGECL) on Friday floated global e-tenders to set up clusters of Battery Energy Storage Systems (BESS) with combined capacity of 500 MW and 1,000 MW in the state.
This is the first time the state is planning such facilities, which is expected to help significantly in reducing its reliance on private power purchase to meet demand during peak hours.
Annually, the utility spends nearly Rs 60,000 crore on private power purchase. Presently, the surplus power generated by solar and wind facilities goes unutilised if the power utilities are unable to evacuate the power at the right time.
While the move is in line with the recent power sector-related policies released by Tamil Nadu, the push also came from the union government, directing all power distribution companies (discoms) to store excess solar and wind energy generated during peak production hours. Under the centre’s Viability Gap Funding (VGF) scheme, 30% of the capital cost for BESS or Rs 27 crore per 1 MW unit, whichever is lower, would be provided as financial support.
A senior TNGECL official told TNIE, “The BESS units are planned at TN Power Distribution Corporation (TNPDCL) and Tamil Nadu Transmission Corporation Limited (TANTRANSCO) substations across the state.” He said a detailed feasibility study is being conducted across its 1,091 substations, including 765 kV, 400 kV and 230 kV facilities, especially to identify the potential locations for setting up BESS, which will take up huge space. He pointed out that setting up a 1-MW BESS unit required four to five acres of land.
“Power discoms are struggling to meet peak-hour electricity demand, especially in the mornings and evenings when consumption is high, and natural energy sources like solar and wind are limited. BESS will help store excess solar and wind energy generated during peak production hours,” the official said, adding the BESS would help stabilise the grid and ensure maximum use of renewable energy.
Highlighting that the availability of space remains a major challenge, another official from TNGECL said, “Large-scale BESS installations require vast land. They need proper ventilation, cooling, fire safety measures and barriers between battery modules, which further increase space requirements.”
Interested companies can submit their bids on or before March 31. All related documents and more details will be available from Monday, the power utility said.
TN among six states chosen for initiative
Tamil Nadu is among the six renewable energy-rich states selected for the BESS initiative, alongside Maharashtra, Telangana, Gujarat, Karnataka and Rajasthan. Under a central scheme, 30% of the capital cost for BESS or Rs 27 crore per 1 MW unit, whichever is lower, would be provided as financial support