Business EconomyPosted at: Nov 4 2026 10:22AM


Vijay Sarkar unveils new BESS promotion policy, eyes 10k MW battery storage capacity by 2029

Chennai, Nov 4 (UNI) The Tamil Nadu government headed by Chief Minister Vijay unveiled a new Battery Energy Storage System (BESS) promotion policy, eyeing to create 10,000 MW of battery storage capacity by 2029.
In line with the announcement made by Finance Minister N.Marie Wilson in his maiden budget speech a new BESS promotion policy
to facilitate private investment and transform TN into India's BESS hub, while managing the peak power demand, Electricity, Law and Prisons Minister CTR.Nirmal Kumar unveiled the policy last evening, designating Tamil Nadu Green Energy Corporation Limited as the State Nodal Agency for coordinating, facilitating and monitoring the implementation of BESS projects under the policy.
Apart from making battery storage mandatory for new solar and wind energy projects with a capacity of one MW and above, the objectives of the policy was to acclerate deployment of BESS across generation, transmission, enhance Renewable Energy (RE) absorption and reduce its curtailment, support compliance with energy storageobligation and other resources adequacy or reliability requirements.
It was also aimed at ptimizing grid operations, reduce demand-supply mismatches and improve grid stability and resilience, create a transparent and investor-friendly framework for storage-as-a-service models, enable BESS-enabled cost optimization, promote local employment, skill development, recycling and environmentally responsible battery lifecycle management while ensuring compliance with the Central Electricity Authority (CEA) Safety Regulations, 2026, and the Battery Waste Management Rules, 2022, as amended from time to time.
The Minister said the operative period of the policy would be three years or until 10 GW of BESS capacity is commissioned, whichever is earlier. It also provides a 10-year waiver of wheeling and transmission charges to attract investments in battery storage projects.
Apart from unveiling the policy, Nirmal Kumar, who also launched a dedicated Renewable Energy Application Portalsaid, these two initiatives were aimed at improving grid stability, reducing dependence on expensive power purchases during peak hours and simplifying approvals for renewable energy projects. Under the new policy, developers setting up solar and solar-hybrid projects with a capacity of
one MW and above will have to install battery storage equivalent to at least 10% of the project's capacity, with a minimum four-hour energy discharge capability. The same requirement will apply to new wind energy projects.
The government has also extended the battery storage requirement to existing renewable energy projects. Existing solar and wind developers will have to install storage capacity equivalent to 5% by 2027-28 and another 5% by 2028-29, taking the total requirement to 10%. The installations will be made at pooling substations.
"At present, Tamil Nadu has around 14,000 MW of installed solar capacity and 9,000 to 10,000 MW of wind capacity. However, we are unable to utilise around 3,000 to 4,000 MW of solar power during the daytime. We have been paying for power that cannot be fully utilised. Battery storage will help us store this excess power and use it when required," he said.
The Minister said the government had decided to waive wheeling and transmission charges for 10 years to encourage investments. The discharged power from battery storage projects would be procured by Tamil Nadu Power Distribution Corporation Limited (TNPDCL).
The government would identify suitable land and substations and assess transmission capacity before floating tenders for individual projects. Investments would be distributed across locations based on land availability, grid capacity and load-flow studies rather than concentrating large storage projects in a single location.
He also said the government would introduce additional schemes and engage with major investors, including battery manufacturers, to achieve the target.
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Tags: #Vijay Sarkar unveils new BESS promotion policy# eyes 10k MW battery storage capacity by 2029
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