The Tamil Nadu government has launched the Tamil Nadu Battery Energy Storage Systems (BESS) Policy, 2026, under which it aims to build a capacity of 10 gigawatt-hours (GWh) by 2029.
The policy has been rolled out to overhaul the state’s power grid, ensure energy security, and slash power purchase costs. The state has also launched a dedicated single-window portal to help applicants.
The state has also launched a dedicated single-window portal to help applicants. The policy has been rolled out to overhaul the state’s power grid, ensure energy security, and slash power purchase costs. It also needs to have a four-hour discharge duration. The new policy aims to solve the issue by capturing surplus solar energy and releasing it during peak power demand hours. To attract private investment and fast-track implementation, the policy offers substantial financial reliefs.
Under the new policy, any new solar or solar-hybrid project of 1 megawatt and above, applied or commissioned on or after the policy notification, must install a BESS capacity of at least 10 per cent of its solar capacity. Eligible BESS projects that begin commercial operations during the policy window will enjoy a complete waiver on transmission and wheeling charges for a period of 10 years.
