Vijay govt bets big on green energy, unveils Tamil Nadu battery storage policy

Tamil Nadu is betting big on battery storage to strengthen its renewable energy infrastructure, with the Joseph Vijay-led government approving a new policy that aims to attract private investment and position the state as a major energy storage hub. The policy targets the installation of at least 2.5 GW of battery storage systems, with a cumulative capacity of 10 GWh, during its operative period.

The policy was issued through an Energy Department notification on Tuesday. Tamil Nadu Green Energy Corporation Limited will serve as the nodal agency for its implementation, news agency Press Trust of India reported.

The initiative seeks to manage fluctuations in renewable energy generation, improve grid operations and reduce power curtailment. Battery systems will store surplus electricity during periods of low demand, particularly during solar power generation hours, and supply it during peak demand periods.

The framework provides separate routes for standalone battery installations and projects located alongside existing renewable energy plants. New solar and hybrid energy projects with a capacity of more than 1 MW, commissioned from April 2027, will have to install battery storage equal to at least 10 per cent of their sanctioned layout. The systems must be capable of discharging power continuously for four hours.

To encourage early adoption and reduce costs for developers, the government has waived applicable transmission and wheeling charges for 10 years. The incentives will be available only to eligible projects commissioned within the policy period, provided the discharged energy is used within Tamil Nadu, PTI reported.

The policy also lays down safety, environmental and cybersecurity requirements. These include the use of domestically developed energy management systems to protect critical infrastructure and ensure responsible management of batteries throughout their lifecycle.

Overall, the policy seeks to expand battery storage capacity across Tamil Nadu, improve the integration of renewable energy and strengthen the electricity grid over the long term.- Ends