This project comprises the development of three standalone BESS installations with a combined capacity of 250 MW / 500 MWh, to be established at the Ottapidaram, Annpankulam, and Kayathar substations—all located in Tamil Nadu.
The project will be executed under the Build-Own-Operate (BOO) model and was awarded through a tariff-based competitive bidding process as part of the State Component of the Viability Gap Funding (VGF) scheme. The Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) will procure energy storage services from NIRL through a 12-year Battery Energy Storage Purchase Agreement (BESPA), ensuring long-term operational engagement.
“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,” Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Ltd, said in a statement.
The BESS installations are designed to perform two full charging and discharging cycles per day, supporting the state’s growing need for flexible and reliable energy solutions. The system will provide “on-demand usage” for Tamil Nadu’s power distribution system, helping to manage peak power demand, stabilise the grid, and integrate renewable energy sources, such as solar and wind, more effectively.
This marks NLCIL’s first large-scale battery energy storage initiative and represents a major step in India’s journey toward clean and dispatchable power infrastructure.
The deployment is expected to enhance Tamil Nadu’s ability to transition from a fossil fuel-heavy energy mix to more sustainable and responsive power systems.
NLCIL has already demonstrated success in battery storage technology through its earlier commissioning of an 8 MWh BESS in the Andaman Islands, integrated with a 20 MW solar power project. That project has notably reduced diesel consumption on the island and improved energy reliability, supporting the region’s transition to clean, green power.