KSEBL Moves KSERC For Approval Of Low-Cost 250 MW/500 MWh Battery Storage Project In Kerala

The Kerala State Electricity Board Limited has taken a major step toward strengthening its power system by filing a petition before the Kerala State Electricity Regulatory Commission for approval of a competitively discovered tariff for a large battery energy storage project. The project involves setting up a 250 MW / 500 MWh standalone Battery Energy Storage System at the Brahmapuram 220 kV substation in Ernakulam.

This initiative is aimed at addressing the growing challenge of managing electricity demand during peak hours, especially in the morning and evening when solar power is not available. By storing cheaper solar energy during the daytime and using it during peak demand periods, the utility plans to reduce its dependence on costly electricity purchases from power exchanges. This is expected to bring down overall power procurement costs and improve grid stability across the state.

A key highlight of the project is the discovery of a highly competitive storage tariff through a transparent bidding process. M/s Shreyas Sortex Industries Private Limited emerged as the successful bidder, quoting a tariff of ₹1,81,000 per MW per month. This works out to around ₹3.59 per kWh, making it one of the lowest storage tariffs seen in Kerala so far. The rate is also considered favorable when compared with similar projects in other states, such as Maharashtra and Gujarat, indicating strong price competitiveness.

The project has also received financial support under the Government of India’s Viability Gap Funding scheme through the Power System Development Fund. Kerala has been allocated ₹90 crore as support, which helps in reducing the overall project cost and ensures that the tariff remains affordable for consumers. Since the project is being implemented directly under this scheme and not through central agencies like SECI, it avoids any trading margin. This is expected to result in savings of nearly ₹18 crore over a period of 15 years.

The location of the project at the Brahmapuram 220 kV substation has been strategically chosen to provide effective grid support. The battery system is designed with a discharge duration of two hours, allowing it to supply power during peak demand periods efficiently. The developer has committed to maintaining a high level of performance, with an assured availability of 95 percent and a round-trip efficiency of 85 percent, which are important for reliable operations.

The project also supports domestic manufacturing under the Make in India initiative. It requires at least 20 percent local content, including the use of indigenously developed energy management software. This will not only strengthen the local supply chain but also promote technological development within the country.

The Letter of Award for the project was issued on February 6, 2026, and the signing of the Battery Energy Storage Purchase Agreement is expected shortly. The project is planned to be commissioned by September 2027. Once operational, it will play a crucial role in improving energy reliability, reducing costs, and supporting Kerala’s transition toward a cleaner and more sustainable power system.