TNGECL Invites Bids For 375 MW/1500 MWh Standalone Battery Energy Storage Project In Tamil Nadu

The Tamil Nadu Green Energy Corporation Limited (TNGECL) has initiated a major energy infrastructure project by issuing a Request for Selection (RfS) to develop 375 MW/1500 MWh of Standalone Battery Energy Storage Systems (BESS). The project is divided into seven separate components and will be executed under a Tariff-Based Global Competitive Bidding process, with Viability Gap Funding (VGF) support provided through the Power System Development Fund (PSDF). The system is designed to handle full 1.5 cycles of charging and discharging each day, highlighting its critical role in grid stability and the integration of renewable energy sources in the state.

The RfS was issued from the TNGECL office in Chennai by the Chief Engineer/NCES. This move reflects Tamil Nadu’s ongoing focus on enhancing energy security and managing the growing share of renewable energy in the state’s power mix. The tender outlines clear financial obligations and procedural timelines for interested bidders.

Bidders are required to submit an Earnest Money Deposit (EMD) of ₹9.20 Lakh per MW of quoted capacity, either through a Bank Guarantee or a Demand Draft. This EMD must remain valid for at least seven months from the bid submission deadline. For the entire 375 MW capacity, the total EMD amounts to ₹34.50 Crore. This financial requirement ensures that participating developers are serious and capable of fulfilling project obligations.

An important step in the tender process is the Pre-Bid Meeting, scheduled for December 4, 2025. This meeting will allow prospective developers to clarify doubts, understand project specifications, and ensure that their proposals meet TNGECL’s requirements. The final submission of bids is due on December 22, 2025, with the techno-commercial bids to be opened on the same day. The financial bids are scheduled for opening on January 5, 2026, completing the competitive bidding timeline.

Successful bidders will also need to submit a Performance Bank Guarantee (PBG) of ₹23 Lakh per MW of awarded capacity. For the full 375 MW project, this PBG would total ₹86.25 Crore. The PBG must be submitted before signing the Battery Energy Storage Purchase Agreement (BESPA) and must remain valid for up to nine months following the Scheduled Commissioning Date (SCD). The SCD is set at 18 months from the effective date of the BESPA, and the BESPA itself must be signed within one month of the issuance of the Letter of Award (LOA) or within 10 days of the State Electricity Regulatory Commission’s (SERC) tariff adoption approval, whichever is later. The project is expected to reach financial closure within 12 months from the BESPA’s effective date.

This BESS project is a key step in strengthening Tamil Nadu’s power infrastructure and managing the intermittency of renewable energy. By incorporating large-scale battery storage, the state aims to ensure grid reliability and support the smooth integration of solar and wind energy. The tender process, with clearly defined financial obligations and timelines, is structured to attract serious developers while minimizing risk.

With these initiatives, TNGECL is signaling a strong commitment to modernizing Tamil Nadu’s energy sector. The project not only provides a path for renewable energy expansion but also demonstrates the state’s proactive approach to balancing supply and demand, ensuring that energy from intermittent sources can be stored and dispatched efficiently. The successful execution of this project is expected to enhance grid stability, secure energy supply, and support the state’s long-term renewable energy targets.