Tamil Nadu Transmission Corporation LTD (Tantransco) has gained a nod of the regulatory body of state power to allow the “right to use” its land and rented distribution for 1 ₹ for the project annually to establish battery energy storage systems (BESS).
The Ministry of the Union’s energy energy has assigned 1000 megawatt -hour (MWH) capacities to Tamil Nadu in the state component of funding the viability gap (VGF) and Tamil over Green Energy Corporation Ltd. It has designed a capacity of 500 MW/1000 MWh on a separate Bess.
Tantransco in his petition in front of the regulatory commission for Tamil’s electricity suggested to carry out 1000 MWh bess under the State component of the VGF system in six wiring, including the capacity of that time, anuppankulam, Ottapidaram, Velalaviduthi, Kayathar and Karaiki with a total capacity of 500 MW/1000 MWs.
He proposed to implement this system according to the “Build Own Operate” model, in which the project is to be established in its substations for basic rent for about 15 years. It is also proposed to select rental rent 1 for the project per year for the rent period.
The funding of viability (VGF) up to 30% of capital costs for Bess or 27 Lakh per MWh, depending on what is lower, is provided by the central government under the state component, Tantransco said.
Tantransco assets, which would be used to develop Bess projects, are merely excess soil, which is not otherwise required to carry out transmission activities with licenses and therefore will not affect transmission activities.
“There will be no income from business by using land for Bess projects, because the whole advantage of activities eventually increases to consumers and other users of the transmission system and distribution system,” Tantransco said.
The energy storage system (ESS) plays an essential role in successful integration of renewable energy into the network and helps the grid operators in controlling the inquiry and supply of renewable energy sources, he said.
The drawn storage systems (PSP) take longer to perform and implement. Bess would be an ideal choice for the close integration of renewable energy, especially while waiting to complete the planned PSP capacity, according to the petition.
When approved by the proposal, Ternec ordered Tantransco to conduct a study of grid connectivity and technical feasibility.
He also ordered Tantransco to enter into a land rental contract with developers for a total of 15 years by properly incorporating the conditions for handing back the land back to Tantransco because it was handed over to the service provider for the establishment of Bess.
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Published – 31 August 2025 17:47
