NLC India’s renewable arm secured a 500 MWh battery energy storage system (BESS) project in Tamil Nadu in June 2025, supporting India’s 500 GW non-fossil fuel target by 2030. The project enhances grid stability for the state’s 10 GW renewable capacity.

NLC India Renewables won the 500 MWh BESS project through a tender by the Solar Energy Corporation of India on June 8, 2025, at a cost of $300 million. Located in Tamil Nadu, with 10,603 MW wind and 12 GW solar, the project will store 2.5 GWh daily, reducing curtailment by 12%. It uses lithium-ion batteries with 85% efficiency, powering 500,000 homes during peak demand.

India’s 159.5 GW renewable capacity faces grid challenges, with 10% of power lost due to intermittency. BESS, with 120 MWh installed nationwide, offers a solution, with Tamil Nadu leading at 50 MWh. The project aligns with the 2025 Budget’s $5,400 crore for storage, targeting 30 GWh by 2030. NLC’s expertise in 1.4 GW solar projects ensures delivery by 2027.

Challenges include high costs ($600/kWh versus $100/kWh for pumped storage) and 80% reliance on imported lithium. Tamil Nadu’s 18 GW renewable manufacturing capacity could localize production, cutting costs by 20%. Environmental concerns, like battery recycling, require $50 million in infrastructure, per CEA estimates. Gujarat’s 100 MWh BESS project shows a 15% cost reduction using AI-based energy management.

The project creates 1,500 jobs and reduces emissions by 800,000 tonnes annually. Tamil Nadu’s Renewable Energy Cluster Programme, with 5 GW planned, supports integration, but land acquisition delays 30% of projects by 6 months.

Conclusion

NLC India’s 500 MWh BESS project strengthens Tamil Nadu’s renewable grid, supporting India’s 2030 goals. Local manufacturing and recycling are vital for scalability.

Source: Economic Times Manufacturing,