CHENNAI: Every new solar project of 1 MW and above in the state will now have to install battery storage, under the Battery Energy Storage System (BESS) Policy 2026 launched by Electricity and Law Minister CTR Nirmal Kumar at the Tamil Nadu Electricity Board headquarters in Chennai on Tuesday. The policy looks to create 10 GWh of storage capacity by 2029 to improve grid stability, ensure reliable supply during peak hours and make better use of solar and wind power.
New solar projects must set up storage equal to at least 10% of their installed capacity, capable of discharging for four hours. The requirement applies to projects that apply on or after the policy’s notification date and those commissioned from April 1, 2027.
New substations that pool renewable power must have standalone battery storage of at least 10% of their sanctioned capacity, while existing ones must add 5% by 2027-28 and another 5% by 2028-29. The minister said the state is unable to utilise around 3,000-4,000 MW of solar power during the day.
TNPDCL will procure 2,500 MW (10,000 MWh) of battery storage in the first phase through competitive bidding, with the prices subject to approval by the Tamil Nadu Electricity Regulatory Commission. TN Green Energy Corporation Ltd (TNGECL) will be the nodal agency for implementing the policy.
The minister said surplus power generated during the day could be stored and used when demand peaks. The policy covers standalone storage projects, storage integrated with solar and wind projects, and facilities supporting transmission and distribution networks. Existing solar and wind projects can also add storage without additional approvals.
Eligible projects commissioned within the policy period will get a 10-year waiver of wheeling and transmission charges, provided the discharged energy is used within the state. The government will facilitate grid connectivity, infrastructure and regulatory clearances to attract private investment, technology and jobs, he said.
The minister also launched the renewable energy application portal, a single-window platform for solar, wind, hybrid wind-solar and battery storage projects. Developers had so far submitted physical applications at the TNEB headquarters and followed them up in person.
They can now complete the process online, from registration, document submission and fee payment to technical scrutiny, load-flow studies and grid connectivity approval.
Applicants can track applications, rectify deficiencies, receive email updates and download approval orders through the portal, which also carries a dashboard and MIS reports.
