Mumbai, Oct. 28 -- The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the procurement of 600 MW of solar power integrated with a 300 MW/1,800 MWh Battery Energy Storage System (BESS). The Tamil Nadu Power Distribution Corporation (TNPDCL) will procure the power at a tariff of Rs. 3.12 per kWh, with the storage component intended to support supply during peak demand hours.
The arrangement provides 600 MW of solar power during solar-generation hours, including 300 MW backed by 1,800 MWh of storage for 6 hours during the designated peak period. The procurement is intended to address part of Tamil Nadu's projected peak-hour power deficit and reduce the distribution utility's reliance on short-term market purchases.
TNERC's approval is based on an analysis submitted by TNPDCL. The assessment projects peak demand of 10,137 MW in FY 2031-32, rising to 12,443 MW in FY 2032-33, 13,768 MW in FY 2033-34 and 14,457 MW in FY 2034-35. The analysis indicates that shortages will continue despite other planned procurement arrangements.
TNPDCL will procure the power from the Solar Energy Corporation of India (SECI) under its Inter-State Transmission System-connected Tranche XXI Scheme. The discovered tariff of Rs. 3.12 per kWh will be accompanied by a trading margin of Rs. 0.07 per kWh payable to SECI. The original SECI tender covered 1,200 MW of solar power and 600 MW/3,600 MWh of storage with a 6-hour duration.
The commission said the storage system would enable contracted renewable power to be supplied during non-solar peak hours. The procurement is also intended to support TNPDCL's Resource Adequacy obligations under the Electricity (Amendment) Rules, 2022, while improving the availability of renewable power and supporting grid stability. The measure follows concerns over recurring peak-hour shortages and the limitations of solar generation outside daylight hours.
Published by HT Digital Content Services with permission from Construction World.