Tamil Nadu approves Battery Storage Policy to boost green energy hub

The Tamil Nadu government approved the Tamil Nadu Battery Energy Storage Systems Policy, 2026, to stabilize the power grid and promote clean energy.

This new framework aims to turn the state into a primary storage center in India by encouraging private investment and modernizing existing energy infrastructure. The policy sets a goal to install at least 2.5 GW of capacity, which equals 10 GWh of storage across the state.

Tamil Nadu Green Energy Corporation Limited will manage the initiative to handle the fluctuations of renewable energy and reduce the loss of power. The plan works by storing extra electricity from solar sources during low demand and releasing it when electricity needs are highest. The government requires new solar and hybrid projects larger than 1 MW to include battery storage starting in April 2027.

These projects must have a storage capacity of at least 10 per cent of their layout with a four hour discharge period. To support developers, the government will waive transmission and wheeling charges for 10 years on eligible projects that use their power within the state. The policy also establishes safety, environmental, and cybersecurity rules to protect the infrastructure. It requires the use of domestic Energy Management Systems to manage the lifecycle of the batteries responsibly.

These measures aim to strengthen the long term resilience of the state power grid.