BESS to make the grid more reliable, help bring in renewable energy, and keep electricity available when demand is high across the state. Image Credit/Source: Newpowa/Unsplash  
Utility

PM Modi lays foundation for 500 MWh BESS in Tamil Nadu

Kaleeswari

Executive Summary

Prime Minister Narendra Modi laid the foundation stone for a 250 MW/500 MWh battery energy storage project in Tamil Nadu on October 11, 2026. Awarded to NLC India Renewables, the project comprises three standalone installations at Ottapidaram, Anuppankulam and Kayathar substations. Developed under a Build-Own-Operate model, the systems will support renewable energy integration, manage peak electricity demand, and strengthen grid reliability. Tamil Nadu Power Distribution Corporation will procure storage services through a 12-year agreement, with financial support under the Viability Gap Funding scheme for the project. 

SNAPSHOT

  • Developer: NLC India Renewables Limited (NIRL) 

  • Locations: Ottapidaram, Anuppankulam, and Kayathar 

  • Configuration: Three standalone BESS installations, 250 MW/500 MWh combined 

  • Grid voltage levels: 400/230/110 kV 

  • Daily operation: Two charging and discharging cycles 

  • Funding: Viability Gap Funding (VGF) support 

  • Procurement: Tariff-based competitive bidding 

  • Offtaker: Tamil Nadu Power Distribution Corporation 

  • Milestone: Foundation stone laid on October 11, 2026 

On October 11, 2026, Prime Minister Narendra Modi laid the foundation stone for a 250 MW/500 MWh Battery Energy Storage System (BESS) project in Tamil Nadu. This project is NLC India’s first large-scale energy storage project. It is meant to make the grid more reliable, help bring in renewable energy, and keep electricity available when demand is high across the state.  

After Tamil Nadu Green Energy Corporation issued a tender in June 2025, NLC India Renewables Limited (NIRL), a subsidiary of NLC India Limited, received the project.   

The storage project will consist of three installations at the Ottapidaram, Anuppankulam, and Kayathar substations in Tamil Nadu. Together, these sites will deliver 250 MW of power capacity and 500 MWh of energy storage.

Each site will run on substations that operate at voltage levels of 400/230/110 kV, supporting the supply of electricity across the transmission and distribution network.  

The battery systems are designed to perform two charging and discharging cycles each day. It charges when the demand is low and discharges at peak hours.   

The project will be carried out using a Build‑Own‑Operate model with bidding based on tariffs. The state portion of the Viability Gap Funding program will provide support.

Under a 12‑year Battery Energy Storage Purchase Agreement, Tamil Nadu Power Distribution Corporation will buy storage services from NIRL.  

In addition, the government is spending about INR 17,000 crore on infrastructure development at Thoothukudi’s VOC Port. With infrastructure that can handle ultra‑large container ships, the port is being developed as a hub for green energy and container handling.   

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