Business EconomyPosted at: Jun 22 2025 4:41PM


NLCIL bags 500 MWh battery storage project

Bengaluru, June 22 (UNI) NLC India Renewables Limited (NIRL), the green energy arm of NLC India Limited (NLCIL), has been awarded a major Battery Energy Storage System (BESS) project by the Tamil Nadu Green Energy Corporation Limited (TNGECL), marking a significant step forward in India’s clean energy transition.
The project involves the development of three standalone battery storage facilities with a combined capacity of 250 MW/500 MWh. These will be established at Ottapidaram, Annpankulam, and Kayathar substations in Tamil Nadu. The facilities will operate under the Build-Own-Operate (BOO) model, and the contract was secured through a tariff-based competitive bidding process under the State Component of the Viability Gap Funding (VGF) scheme.
Once operational, the systems will provide on-demand energy storage services to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) under a 12-year Battery Energy Storage Purchase Agreement (BESPA). This will enable the state to better manage peak electricity demand, enhance grid stability, and integrate variable renewable energy such as solar and wind power.
This development marks NLCIL’s entry into large-scale energy storage, following its earlier success in deploying an 8 MWh battery storage system alongside a 20 MW solar power plant in the Andaman Islands. That project significantly reduced the use of diesel on the island, boosted energy reliability, and demonstrated the role of battery storage in transitioning to clean power.
The new project is expected to play a key role in Tamil Nadu’s renewable energy strategy, allowing for greater flexibility in grid operations and paving the way for the broader adoption of renewable energy sources. It also reinforces NLCIL’s strategic goal of achieving 10 GW of renewable energy capacity by 2030, in alignment with India's net-zero ambitions.
Commenting on the achievement, Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited, said the project demonstrates the company’s transformation from a lignite-based enterprise into a frontrunner in the clean energy space. “The award of the 500 MWh BESS from TNGECL positions us at the forefront of energy storage innovation in the country. We remain committed to building a sustainable and flexible power ecosystem that supports India’s decarbonisation goals,” he said.
With this project, NLCIL further cements its role as a key player in India’s journey toward a clean, efficient, and resilient power infrastructure.
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