Kerala Awards 125 MW/500 MWh BESS Projects To NTPC, Opera, Tata
Kerala’s green energy transition has received a significant boost with NTPC Green Energy, Opera Energy, and Tata Power Renewable Energy emerging as winners in NHPC’s auction for 125 MW/500 MWh standalone battery energy storage systems (BESS). These pivotal projects, connected to the state’s intrastate transmission system, underscore a strategic commitment to enhancing grid stability and integrating renewable energy. This development is crucial for advancing Kerala’s journey towards a zero-net-carbon, eco-friendly, and sustainable energy future.
The auction results, based on a tender issued in January 2025, allocate capacities across various substations. NTPC Green Energy secured two projects, each with a capacity of 40 MW/160 MWh, at Sreekantapuram and Pothencode substations, with monthly tariffs of ₹434,000 and ₹457,000 per MW respectively. Opera Energy was awarded a 15 MW/60 MWh system at Mulleria substation at ₹438,000 per MW per month, while Tata Power Renewable Energy won the contract for a 30 MW/120 MWh system at Areacode substation, also priced at ₹438,000 per MW per month.
These battery energy storage systems are integral to modernising Kerala’s power infrastructure. They provide essential flexibility to the grid, enabling it to store surplus renewable energy generated during peak production times (e.g., sunny afternoons for solar) and discharge it during periods of high demand or low generation (e.g., evenings or cloudy days). This capability is vital for mitigating the intermittency of renewable sources and ensuring a consistent, reliable power supply, which is fundamental for supporting industrial growth and improving the quality of life in both urban and rural areas.
All successful developers are mandated to commission their projects within 18 months from the date of signing the battery energy storage purchase agreement. These projects are eligible for viability gap funding, either ₹2.7 million per MWh or 30% of the capital cost, whichever is lower, providing crucial financial support. Furthermore, developers are required to provide a security deposit of ₹500,000 per MWh before the first phase of commissioning, ensuring accountability and adherence to project timelines.
Operational requirements for these BESS units are stringent, demanding at least one full charge-discharge cycle per day and a minimum 95% system availability monthly. Additionally, the systems must maintain a round-trip efficiency of at least 85% on an AC-to-AC basis. Crucially, the Kerala State Electricity Board will prioritise charging these systems from renewable sources, maximising the environmental benefits. Only tested and commercially operational technologies that comply with existing codes and standards are permitted, ensuring the deployment of robust and reliable solutions.
The integration of these advanced battery storage systems is a significant step towards achieving Kerala’s and India’s broader climate goals. By stabilising the grid and facilitating greater penetration of renewable energy, these projects directly contribute to reducing reliance on fossil fuels, thereby lowering greenhouse gas emissions and improving air quality. This investment in green infrastructure not only supports environmental stewardship but also ensures equitable access to reliable and clean power for all citizens, fostering sustainable and resilient urban and rural development across the state.
