Tamil Nadu Green Energy Corporation Ltd (TNGECL) has invited bids to develop six standalone battery energy storage systems (BESS) with a total capacity of 1,000 MWh (500 MW x 2 hours). These systems will support Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) by providing energy on demand.
Government Support Through Viability Gap Funding (VGF)
To promote BESS development, the central government will offer Viability Gap Funding (VGF) under the state component scheme. The funding will cover up to 30% of the capital cost of the BESS or INR 27 lakh per MWh, whichever is lower. The VGF will be a one-time grant fully financed by the central government.
Project Requirements and Bid Specifications
- The minimum bid size is 50 MW x 2 hours (100 MWh).
- Developers must submit bids in multiples of 50 MW x 2 hours (100 MWh).
- Each 50 MW/100 MWh project will receive approximately 7,000 sqm of land for development.
- Build-Own-Operate (BOO) Model for Developers
- The selected developers will construct and operate the BESS on a Build-Own-Operate (BOO) model.
TNPDCL, the end procurer, will:
- Sign a Battery Energy Storage Purchase Agreement (BESPA) with the developers.
- Handle the charging of BESS to ensure smooth operations.
As reported by pv-magazine-india.com, with this initiative, Tamil Nadu aims to enhance grid reliability, support renewable energy integration, and drive advancements in energy storage technology.
