NLC, Bondada, Oriana Win Tamil Nadu’s 500 MW/1,000 MWh Battery Storage Auction

NLC India Renewables, Bondada Engineering, and Oriana Power have emerged as winners in Tamil Nadu Green Energy Corporation Ltd’s (TNGECL) auction for standalone battery energy storage systems (BESS), securing a total capacity of 500 MW / 1,000 MWh.

The tender was floated under a build-own-operate model in March, iNLC India Renewables, a subsidiary of public sector enterprise NLC India Ltd, won the largest share with 250 MW / 500 MWh of capacity at a quoted tariff of INR 248,000 per MW per month. Bondada Engineering secured 200 MW / 400 MWh at INR 246,000 per MW, while Oriana Power was awarded 50 MW / 100 MWh at the same tariff.

As per TNGECL’s plan, the battery systems will be installed across six substations. NLC will execute its projects at Ottapidaram, Anuppankulam, and Kayathar; Bondada Engineering will set up its systems at Vellalaviduthi and Thennampatty; and Oriana Power’s project will be located at Karaikudi. All projects are expected to be completed within 18 months from the signing of the Storage Energy Purchase Agreements (SEPAs). Each system must support two full charge-discharge cycles per day and meet minimum technical requirements, including at least 95 percent system availability and 85 percent round-trip efficiency per month.

The BESS installations are expected to play a pivotal role in addressing Tamil Nadu’s growing renewable energy integration needs. With over 19 GW of renewable energy capacity, predominantly from wind and solar, The state frequently experiences generation surpluses during low-demand hours and shortfalls during peak periods. The battery systems will help store excess generation and discharge power during high-demand times, enhancing grid stability and reducing the need for renewable energy curtailment.

The projects will benefit from central government support through Viability Gap Funding (VGF), which covers up to 30 percent of capital costs. Under the agreement, power from the storage systems will be procured over a 12-year period by Tamil Nadu’s power distribution utility, TANGEDCO.