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Chennai, Oct 18 (IANS) Tamil Nadu has taken a decisive step towards achieving its renewable energy ambitions by approving its first solar power project integrated with battery storage.
The initiative, which is seen as a breakthrough in the state’s clean energy transition, comes four years after the state government announced an ambitious plan to install 20,000 MW of solar capacity and 10,000 MW of battery storage within a decade.
In a historic order, the Tamil Nadu Electricity Regulatory Commission (TNERC) has permitted Tamil Nadu Green Energy Corporation Limited (TNGECL) to issue tenders for two grid-connected solar power projects with battery energy storage systems (BESS). Each project, with 15 MW solar capacity and 45 MWh of storage, will come up in Karur and Tiruvarur districts and will be operated on a build-own-operate model for 25 years.
According to TNGECL, these hybrid projects are designed to meet the increasing evening peak demand of the state, which solar power alone cannot handle.
Tamil Nadu’s peak power requirement is expected to increase from 19,409 MW in 2023-24 to over 27,500 MW by 2029-30, while annual energy demand may almost double by 2034-35. Although Tamil Nadu already has over 10,800 MW of solar power capacity, generation is limited to daylight hours, forcing the utility to purchase high-cost power from exchanges during the evening.
With battery storage, new projects will be able to shift the timing of solar power generation to peak hours, reducing both costs and dependence on thermal power. The combined capital investment for both projects is pegged at around Rs 200 crore, with an estimated tiered tariff of Rs 6.49 per unit – which is significantly lower than peak exchange prices which can reach Rs 10 per unit. Over 25 years, the projects are expected to save around Rs 90 crore to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) compared to market procurement.
K in Karur. Land has been identified for projects in Pichampatti and Korukkai in Tiruvarur. Once operational, they will provide stable renewable energy supply during evening hours and position Tamil Nadu as a leader in dispatchable green energy.
Officials said the initiative marks the beginning of Tamil Nadu’s transition towards flexible, storage-backed renewable generation. “These projects will serve as a learning platform for large-scale integration of battery systems into the state grid and pave the way for future investments in round-the-clock green energy,” said a senior TNGECL source.
–IANS
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