In a landmark move towards a clean energy future for India, NLC India Ltd has been issued a Letter of Award (LoA) to set up three standalone Battery Energy Storage System (BESS) projects aggregating 250 MW / 500 MWh capacity. The projects, awarded to NLC by Tamil Nadu Green Energy Corporation Ltd (TNGECL), mark NLC's first high-ticket entry into grid-scale energy storage.
1. Project Highlights
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BESS projects require to be commissioned at Ottapidaram, Anuppankulam, and Kayathar substations in Tamil Nadu.
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The systems will be capable of performing two charge-discharge cycles in a day and provide on-demand energy storage to grid stabilization.
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The systems will be commissioned under Build-Own-Operate (BOO) model with Viability Gap Funding (VGF) support.
2. Strategic Importance
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This is NLC India Ltd's inaugural big grid-scale BESS venture and a milestone in the transition of the company from lignite-based to renewable energy-led power.
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The storage facility will help blend intermittent solar and wind energy, manage peak demand, and provide grid stability.
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Storage services will be contracted by Tamil Nadu DISCOM in a 12-year Battery Energy Storage Purchase Agreement (BESPA).
3. National Energy Goals & NLC's Vision
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The project aligns with India's COP26 pledge and 500 GW non-fossil fuel capacity target for 2030.
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NLC India has an end-of-decade target of 10 GW of renewable capacity.
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CMD Prasanna Kumar Motupalli described the project as a "testament to NLCIL's transformation into a clean energy pioneer."
Sources: The Hindu BusinessLine, Economic Times, Business Standard