Tata Power Signs 120 MWh Battery Energy Storage Deal with NHPC for Kerala

Mumbai – Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, has signed its first-ever Battery Energy Storage Purchase Agreement (BESPA) with government-owned energy major NHPC Limited.

The agreement, finalized under NHPC’s BESS Tranche-I tender through competitive bidding, is aimed at supporting the Kerala State Electricity Board Limited (KSEB), which will be the end-user of the Battery Energy Storage System (BESS). As per the deal, TPREL will set up a 30 MW/120 MWh battery energy storage facility at the 220 kV substation in Kerala’s Area Code region, the company said in a statement on Friday.

This project is expected to play a crucial role in managing peak power demand, improving grid flexibility, and ensuring smoother integration of renewable energy into Kerala’s power network.

The initiative is part of NHPC’s broader plan to build 125 MW/500 MWh of standalone battery storage capacity in Kerala, supported by Viability Gap Funding and developed under a tariff-based competitive bidding framework.

Aligned with the Government of India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030, the project is being implemented under guidelines issued by the Ministry of Power. It will operate under a 12-year BESPA and is scheduled for commissioning within 15 months—marking a significant step towards enabling 24/7 renewable energy supply and strengthening grid resilience.

TPREL already operates a combined Solar and BESS project in Rajnandgaon, Chhattisgarh, which includes a 100 MW solar PV plant integrated with a 120 MWh utility-scale battery storage system. This project was developed under an EPC contract awarded by the Solar Energy Corporation of India (SECI).

The Kerala project marks TPREL’s first success in the standalone BESS segment.

With this new addition, TPREL’s total renewable energy portfolio now stands at approximately 10.9 GW—including 5.6 GW of operational capacity (comprising 4.6 GW of solar and 1 GW of wind) and 5.3 GW under various stages of development, the company added.

With inputs from IANS