Tamil Nadu and Kerala BESS tenders show divergent tariffs

Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and NTPC Vidyut Vyapar Nigam Ltd (NVVN) have awarded large standalone Battery Energy Storage System (BESS) projects, with discovered tariffs reflecting differing technical requirements and evolving market conditions.  

The energy arm of TANGEDCO, Tamil Nadu Green Energy Corporation Limited (TNGECL), has awarded a 375 MW / 1,500 MWh standalone BESS project. The tender is notable as India’s first to mandate 1.5 cycles per day over a 15-year contract period. The lowest discovered tariff stood at Rs 3.15 lakh per MW per month. The tender was issued in November 2025 and finalised within two months. Eagle Construction Co emerged as the lowest bidder, followed by OPG Power Generation and Onward Solar Power.

In parallel, NVVN awarded a 250 MW / 500 MWh standalone BESS project for Kerala. Issued in October 2025 and awarded after three months, the tender specifies 420 cycles per year over a 15 year term. The lowest discovered tariff was Rs 1.81 lakh per MW per month. Shreyas Sortex Industries Private Limited quoted the lowest tariff. Other bidders securing capacity at higher rates included OPG Power Generation, Oriana Power, NTPC Green Energy and Power Grid Corporation of India.

The tariff discovery occurs amidst sector-wide challenges, including volatile battery raw material costs, currency fluctuations, and policy changes, which have previously led some manufacturers to cancel contracts. The notably higher tariff in Tamil Nadu likely reflects the more intensive 1.5-cycle daily usage profile, which demands greater battery throughput and degradation management compared to Kerala’s requirement.

These awards signal strong momentum for standalone BESS procurement in India, with both states advancing grid-scale storage despite cost pressures. The participation of established power sector players like NTPC and Power Grid alongside newer entrants highlights the growing strategic importance of energy storage in India’s power infrastructure.