BESS Policy should reduce high cost power purchases, says T.N. Electricity Consumers’ Association

The Tamil Nadu Electricity Consumers’ Association that has welcomed the Tamil Nadu Battery Energy Storage System (BESS) Policy said in a press release on Friday that the recent dependence on expensive short-term power purchases by the State highlights the urgent need for effective energy storage solutions.

Storing the renewable energy generated by wind and solar energy plants can improve grid stability and reduce renewable energy wastage and dependence on high-cost power purchases from the spot market.

The policy envisages deployment of at least 2.5 GW / 10 GWh of battery storage in three years; new eligible solar and solar-hybrid projects of one MW and above will have to install battery storage equivalent to at least 10% of their installed capacity, with four-hour discharge capability; eligible standalone and co-located BESS projects will receive 100% waiver of applicable transmission and wheeling charges for 10 years, subject to policy conditions; the TNPDCL is expected to procure 2,500 MW / 10,000 MWh of storage capacity through competitive bidding in the first phase; and storage systems will support peak-demand management and improve the integration of renewable energy.

President of the Association L. Santhosh said in the release that the BESS must be strategically deployed to reduce expensive evening peak-hour purchases, the financial benefits arising from energy storage and reduced power procurement costs should reflect in the electricity tariff for industrial and commercial consumers, battery storage projects should be awarded through competitive bidding, High Tension consumers should be encouraged to establish captive and behind-the-meter battery storage systems through appropriate incentives and a simplified regulatory framework, and the actual savings, battery efficiency, availability, operating costs and benefits to the distribution system should be periodically monitored and disclosed

“For the Association, the real success of the BESS policy will be when Tamil Nadu can reduce its dependence on costly power purchases and provide reliable electricity to industries at competitive tariffs,” he said.

Tamil Nadu / electricity production and distribution / renewable energy / industrial production