Tamil Nadu to Reduce Power Purchase Costs with Battery Energy Storage

Strategic Insights -

Tamil Nadu is on the verge of revolutionizing its power management with the implementation of battery energy storage systems (BESS). The Tamil Nadu Green Energy Corporation (TNGECL) plans to set up a 2,500 megawatt-hour (MWh) BESS to store excess solar power generated during the day and utilize it during peak hours at night. This initiative aims to reduce the state's reliance on high-cost power purchases and thermal plants to meet evening peak hour demand. With the Union power ministry's push for viable gap funding, TNGECL will float a tender for 1,500MWh battery systems in Madurai, Coimbatore, and Trichy, which will enable the state to reduce power purchase costs and ensure uninterrupted power supply.

Key Takeaways:

  • The Tamil Nadu Green Energy Corporation (TNGECL) plans to set up a 2,500MWh battery energy storage system (BESS) to store excess solar power generated during the day and utilize it during peak hours at night.
  • The BESS will be set up in Madurai, Coimbatore, and Trichy on the lands of Tamil Nadu Transmission Corporation (Tantransco) adjacent to their substations.
  • The system will store approximately 2.25 million units of power and release it in the evening hours for up to four hours to meet the power demand.
  • This initiative aims to reduce the state's reliance on high-cost power purchases and thermal plants to meet evening peak hour demand.
  • The Union power ministry's push for viable gap funding has enabled TNGECL to implement the BESS project.
  • The Tamil Nadu Electricity Regulatory Commission (TNERC) recently approved Tantransco's proposal to lease its lands for BESS developers.
  • Aneesh Sekhar, MD, TNGECL, stated, "This will enable TNGECL to absorb as much solar power into the system without curtailment and reduce reliance on high-cost power from the market to ensure uninterrupted power supply."

Statistics:

  • 2,500MWh capacity of battery energy storage systems (BESS) planned by TNGECL
  • 1,500MWh battery systems to be set up in Madurai, Coimbatore, and Trichy
  • Storage capacity of approximately 2.25 million units of power
  • Release duration of stored power: up to four hours
  • Current peak power demand in Tamil Nadu: 22,000MW (megawatts)
  • Expected increase in peak power demand in coming years

Sources:

  • Times of India, [Source](https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-to-reduce-power-purchase-costs-with-battery-energy-storage/articleshow/82951362.cms)