In a significant move towards enhancing the efficiency of power usage, particularly from renewable sources, the Tamil Nadu Green Energy Corporation Limited (TNGECL) has announced the launch of global e-tenders for the establishment of clusters of Battery Energy Storage Systems (BESS) with a total capacity of 500 MW and 1,000 MW in the state. This initiative marks the first time Tamil Nadu has planned such facilities, aimed at reducing dependence on private power purchases during peak demand periods.
Currently, the utility spends around Rs 60,000 crore annually on these private purchases. Often, surplus energy generated from solar and wind sources goes unused when power utilities cannot evacuate it in a timely manner. This initiative aligns with recently released policies for the power sector in Tamil Nadu and responds to directives from the central government, which has mandated all power distribution companies (discoms) to store excess solar and wind energy produced during peak generation times.
Under the central government’s Viability Gap Funding (VGF) scheme, financial support covering 30% of the capital cost for BESS will be available, limited to Rs 27 crore per 1 MW unit, whichever amount is lower. A senior official from TNGECL indicated that these BESS units will be installed at substations managed by the Tamil Nadu Power Distribution Corporation (TNPDCL) and Tamil Nadu Transmission Corporation Limited (TANTRANSCO) throughout the state. A thorough feasibility study is currently underway across 1,091 substations, including facilities rated at 765 kV, 400 kV, and 230 kV, to identify suitable locations for BESS installations, which require substantial land area. Specifically, establishing a 1-MW BESS unit necessitates four to five acres of land.
The official noted that power discoms face challenges in meeting electricity demand during peak hours, particularly in the morning and evening when consumption spikes and natural energy sources like solar and wind are less available. The BESS systems will facilitate the storage of excess energy generated during peak production periods, thereby aiding in grid stabilization and maximizing the use of renewable energy.
However, another official from TNGECL highlighted that the availability of space poses a significant challenge for large-scale BESS installations. Such systems require extensive land, proper ventilation, cooling solutions, fire safety measures, and physical barriers between battery modules, all of which contribute to increased space requirements.
Interested companies are invited to submit their bids by March 31. Additional information and relevant documents will be accessible starting Monday, according to the power utility.
Tamil Nadu is one of six states selected for this BESS initiative, alongside Maharashtra, Telangana, Gujarat, Karnataka, and Rajasthan.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/tamil-nadu-launches-tenders-for-500-mw-and-1000-mw-battery-energy-storage-systems-to-boost-renewable-energy-utilization/
