Kerala State Electricity Board Limited has filed a petition with the state electricity regulatory commission seeking approval for a new tariff structure for a large-scale battery storage project in Ernakulam. The proposed project will be developed at the Brahmapuram substation and will feature a 250 MW / 500 MWh grid-scale Battery Energy Storage System (BESS), aimed at improving the efficiency and reliability of the state’s power supply.
The initiative comes as Kerala continues to expand its reliance on renewable energy, particularly solar power. While solar energy offers clean and cost-effective generation during the day, it also presents challenges due to its intermittent nature. Power demand in Kerala typically peaks during the morning and evening hours when solar generation is low or unavailable. This mismatch often forces the state to purchase expensive electricity from external sources to meet demand.
The proposed BESS project is expected to address this issue by storing excess solar energy generated during the daytime and supplying it during peak demand periods. This approach will not only enhance grid stability but also help reduce dependency on costly power procurement, ultimately lowering the overall energy cost for consumers.
To support the financial viability of the project, it has been selected under the central government’s Viability Gap Funding (VGF) scheme. Kerala has been allocated ₹90 crore as financial assistance for the project, which has an estimated total cost of ₹600 crore. The tender process attracted strong interest, with seven companies participating in the bidding process.
Shreyas Sortex Industries Private Limited emerged as the successful bidder, offering a competitive tariff of ₹1.81 lakh per MW per month. This rate is considered one of the most competitive discovered for energy storage projects in the state so far, reflecting growing market maturity and investor confidence in battery storage solutions.
The project also aligns with the government’s push for domestic manufacturing and local value addition. As per guidelines, at least 20% of the total project cost must be sourced from local Indian content. This includes not only hardware components but also the advanced software systems required for efficient energy management and system optimization.
Technically, the battery storage system is designed for a lifespan of 15 years and will ensure high operational efficiency, with a guaranteed availability of 95%. These features are expected to provide consistent performance and reliability over the long term.
KSEBL has also emphasized that the project does not include any trading margin, which is expected to result in direct savings of approximately ₹18 crore over its lifetime. This cost advantage further strengthens the economic case for adopting battery storage solutions in the state.
The project is scheduled to be commissioned by September 2027. Once operational, it is expected to play a key role in stabilizing Kerala’s power grid, enabling better integration of renewable energy, and supporting the state’s transition toward a cleaner and more sustainable energy future.
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