Tamil Nadu government approves new battery storage policy for green energy

The Tamil Nadu government has officially approved the 'Tamil Nadu Battery Energy Storage Systems Policy, 2026' to enhance grid stability and accelerate the transition towards clean energy. According to a report by Hindustan Times, the primary objective of this new policy, released by the Department of Energy, is to make the state India's leading storage hub by attracting large-scale private investments and modernising energy infrastructure.

Under this policy announced on Tuesday, an ambitious target has been set to establish 10 GWh storage with a minimum of 2.5 GW capacity during operational periods in the state. This initiative will function under the nodal agency named Tamil Nadu Green Energy Corporation Limited. The scheme aims to address the complex challenges of intermittent renewable energy production, improve grid operations management, and significantly reduce power curtailment.

Under this policy, when electricity demand is low, especially during solar energy periods, surplus electricity will be stored and used during peak demand periods, which is crucial for energy security. To achieve these strategic goals, the framework outlines separate pathways for independent battery installations and projects associated with existing renewable energy plants.

As per the regulations, new solar and hybrid energy projects of more than 1 MW that become operational from April 2027 will be mandatory to have battery storage capacity of at least 10 percent of their approved layout, which must have the capacity for four hours of continuous discharge. To reduce the economic burden on developers, the government has provided complete exemption in transmission and wheeling charges applicable for a period of 10 years. These incentives are only for projects that become operational within the policy period and from which the discharged energy is used within the state itself.

Additionally, strict safety, environment, and cyber security protocols have been established to protect critical infrastructure and ensure responsible battery lifecycle management, which includes the use of locally developed energy management systems.