Tamil Nadu government releases three-year BESS policy
The policy aims to deploy 2.5 GW/10 GWh of Battery Energy Storage System during this period. The TNPDC will procure BESS capacity aggregating to 2,500 MW/10,000 MWh from eligible BESS projects
Existing solar and wind renewable energy projects of one MW and above will be encouraged to install BESS for renewable energy integration, peak management or grid support.
The Tamil Nadu government has released a three-year Tamil Nadu Battery Energy Storage Systems Policy 2026, envisaging deployment of 2.5 GW/10 GWh of Battery Energy Storage System (BESS) during this period.
Existing solar and wind renewable energy projects of one MW and above will be encouraged to install BESS for renewable energy integration, peak management or grid support. It will be mandatory for new solar or solar-hybrid renewable energy projects of one MW and above applied on or after the date of notification of the policy or commissioned on or after April 1, 2027 to install BESS capacity of at least 10% of the solar project’s installed capacity.
Co-located and standalone BESS will be eligible for 100% waiver of applicable transmission and wheeling charges attributable to the eligible BESS, according to the policy.
This Policy will apply to all the BESS projects applied on or after the date of notification of this Policy or commissioned on or after April 1 next year and will encourage standalone and co-located projects. The Tamil Nadu Power Distribution Corporation (TNPDC) will procure BESS capacity aggregating to 2,500 MW/10,000 MWh from eligible BESS projects availing benefits under this policy in the first phase.
The Tamil Nadu Green Energy Corporation Limited will be the State Nodal Agency to co-ordinate, facilitate, and monitor the implementation of BESS Projects and it will operate a single window system for BESS projects.
With the State having an installed renewable energy capacity of 29.8 GW, including 14.5 GW of solar power and 11.6 GW of wind power, the policy will aim to support grid stability and renewable energy integration and energy security.
Tamil Nadu is currently developing four BESS projects, comprising a 500 MW/1,000 MWh project under Viability Gap Funding for Development of Battery Energy Storage System scheme, a 375 MW/1,500 MWh project under Viability Gap Funding Scheme for development of BESS supported through Power System Development Fund scheme, and two solar with BESS projects of 15 MW/45 MWh each.
Tamil Nadu / renewable energy / electricity production and distribution
- bess
- policy
- tamil
- nadu
- government
- gwh
- battery
- energy
