PM Modi Lays Foundation for 500 MWh BESS in Tamil Nadu

Prime Minister Narendra Modi has laid the foundation stone for a 250 MW/500 MWh Battery Energy Storage System (BESS) project in Chennai, Tamil Nadu. The project is expected to support peak power demand and improve the availability of electricity during critical load periods.

The Prime Minister also announced plans to develop V.O. Chidambaranar (VOC) Port in Thoothukudi into a major container port and green energy hub, involving an investment of approximately INR 17,000 crore. The development is expected to strengthen port infrastructure and support industrial and transportation activities in Tamil Nadu. 

The BESS project was awarded to NLC India Renewables Limited (NIRL), a subsidiary of NLC India Limited (NLCIL), following a tender issued by Tamil Nadu Green Energy Corporation Limited (TNGECL) in June 2025. It is NLCIL’s first large-scale energy storage initiative.

The project comprises three standalone battery storage units with a combined capacity of 250 MW/500 MWh. The units will be installed at substations in Ottapidaram, Anuppankulam and Kayathar, Tamil Nadu, operating at voltage levels of 400/230/110 kV.

The storage systems are designed to support two complete charging and discharging cycles daily. This capability is expected to help manage peak electricity demand and improve power availability during periods of high consumption.

The project will be implemented under the Build-Own-Operate (BOO) model and was awarded through a tariff-based competitive bidding process. It will receive financial assistance under the state component of the Viability Gap Funding (VGF) scheme.

Tamil Nadu Power Distribution Corporation Ltd.(TNPDCL) will procure energy storage services from NIRL for 12 years under a Battery Energy Storage Purchase Agreement (BESPA). The long-term arrangement is intended to provide storage support to the state’s electricity grid.

Separately, VOC Port in Thoothukudi is set to undergo development into a major container port and green energy hub, with an estimated investment of approximately INR 17,000 crore.

The planned infrastructure development is expected to enable the port to accommodate ultra-large container vessels, strengthening its capacity to handle maritime trade. The initiative is also intended to support Tamil Nadu’s industrial and transportation infrastructure.

Together, the port development and battery storage project represent investments in port infrastructure and electricity storage, addressing different aspects of Tamil Nadu’s energy and industrial requirements.