Tamil Nadu Government Unveils Three-Year Policy Targeting 2.5 GW Battery Storage

Tamil Nadu will target the deployment of 2.5 GW/10 GWh of Battery Energy Storage Systems (BESS) under a new three-year policy released by the state government.

The Tamil Nadu Battery Energy Storage Systems Policy 2026 is intended to support renewable energy integration, peak management and grid support.

Mandatory storage for new renewable projects

Existing solar and wind renewable energy projects with a capacity of one MW and above will be encouraged to install BESS.

For new solar or solar-hybrid renewable energy projects of one MW and above, BESS installation will be mandatory if the projects are applied for on or after the policy’s notification date or commissioned on or after April 1, 2027.

These projects must install BESS capacity equal to at least 10% of the solar project’s installed capacity.

The policy will apply to all BESS projects applied for on or after its notification date or commissioned on or after April 1 next year.

It will encourage both standalone and co-located BESS projects.

Waiver of transmission and wheeling charges

Co-located and standalone BESS projects will be eligible for a 100% waiver of applicable transmission and wheeling charges attributable to the eligible BESS, according to the policy.

The Tamil Nadu Power Distribution Corporation (TNPDC) will procure BESS capacity totalling 2,500 MW/10,000 MWh from eligible projects that use the benefits provided under the policy.

This procurement will take place in the first phase of the policy.

The policy’s targets provide a framework for adding storage alongside renewable energy projects and for procuring capacity from eligible BESS developments.

Single-window system for projects

The Tamil Nadu Green Energy Corporation Limited will act as the State Nodal Agency for coordinating, facilitating and monitoring the implementation of BESS projects.

It will also operate a single-window system for BESS projects.

Tamil Nadu has an installed renewable energy capacity of 29.8 GW, including 14.5 GW of solar power and 11.6 GW of wind power.

Against this renewable energy base, the policy aims to support grid stability, renewable energy integration and energy security.

Projects already under development

Tamil Nadu is currently developing four BESS projects.

These include a 500 MW/1,000 MWh project under the Viability Gap Funding for Development of Battery Energy Storage System scheme.

Another project has a capacity of 375 MW/1,500 MWh and is being developed under the Viability Gap Funding Scheme for development of BESS supported through the Power System Development Fund scheme.

The state is also developing two solar-with-BESS projects, each with a capacity of 15 MW/45 MWh.

The policy was published on November 04, 2026 at 12:30 am IST.

Source: The Hindu