KSERC Approves 250 MW/500 MWh Battery Energy Storage Project For Kerala Grid Stability

The Kerala State Electricity Regulatory Commission (KSERC) has approved a major battery energy storage project proposed by the Kerala State Electricity Board Limited (KSEBL). The project involves the development of a 250 MW/500 MWh grid-scale Battery Energy Storage System (BESS) at the Brahmapuram 220 kV substation in Ernakulam district. The approval was granted in June 2026 under Section 63 of the Electricity Act, 2003.

The commission adopted a tariff of ₹1.81 lakh per MW per month, which was discovered through a transparent competitive bidding process. The bidding process was conducted by NTPC Vidyut Vyapar Nigam Limited (NVVN), which acted as the bid process coordinator. The approved tariff translates into an estimated levelized storage cost of around ₹3.59 per kWh, making it one of the most competitive battery storage projects in the country.

The project will receive financial support under the Central Government’s Viability Gap Funding (VGF) scheme. The scheme is supported through the Power System Development Fund and aims to promote large-scale battery storage deployment across India. Kerala has been allocated 500 MWh of storage capacity under the program. The state will receive financial assistance of ₹18 lakh per MWh, resulting in a total grant of ₹90 crore. This support will help reduce the overall project cost, which is estimated at around ₹600 crore.

Shreyas Sortex Industries Private Limited emerged as the successful bidder for the project. The company signed a 15-year Battery Energy Storage Purchase Agreement with KSEBL in March 2026 and will develop the project on a standalone basis.

The storage system is expected to address growing challenges in Kerala’s power sector. The state has witnessed a rapid increase in rooftop solar installations, leading to excess power generation during daytime hours. At the same time, demand rises sharply during evening hours, creating supply shortages. This situation often forces KSEBL to purchase costly electricity from the short-term power market.

Once operational, the battery storage system will store surplus solar power during the day and release it during peak demand periods. This will help reduce dependence on expensive market purchases and improve grid reliability. KSEBL estimates savings of around ₹18 crore through the avoidance of intermediary trading margins.

The project is expected to achieve a 95 percent availability factor and maintain a minimum round-trip efficiency of 85 percent. Commercial operations are scheduled to begin by September 2027. The commission has also directed KSEBL to explore possibilities for early commissioning to help address peak-hour power shortages at an earlier stage.