Chennai, In a decisive move to bolster grid stability and accelerate the transition toward clean energy, the Tamil Nadu government has officially approved the Tamil Nadu Battery Energy Storage Systems Policy, 2026.
Issued through an energy department notification, the newly enacted framework aims to transform the state into India's foremost storage hub by attracting large-scale private investments and modernising energy infrastructure.
The policy, which was released on Tuesday, sets an ambitious target to deploy at least 2.5 GW, matching a 10 GWh storage capacity across the state during its operative period.
Accordingly, operating under the nodal agency Tamil Nadu Green Energy Corporation Limited , the initiative aims to tackle the complexities of variable renewable generation, optimise grid operations, and significantly reduce power curtailment.
By storing surplus electricity during low-demand hours-specifically leveraging solar generation windows-and discharging power during peak demand periods, the policy addresses vital energy security requirements.
To achieve these strategic goals, the framework outlines distinct pathways for both standalone battery installations and projects co-located with existing renewable energy plants.
Furthermore, new solar and hybrid energy projects exceeding 1 MW, commissioned from April 2027 onward, will be mandated to integrate battery storage capacity equivalent to at least 10 per cent of their sanctioned layout, complete with a four-hour continuous discharge duration.
{{/usCountry}}Furthermore, new solar and hybrid energy projects exceeding 1 MW, commissioned from April 2027 onward, will be mandated to integrate battery storage capacity equivalent to at least 10 per cent of their sanctioned layout, complete with a four-hour continuous discharge duration.
{{/usCountry}}To incentivise early adoption and ease financial burdens for developers, the government has introduced a complete waiver of applicable transmission and wheeling charges for a duration of 10 years.
These incentives apply strictly to eligible projects commissioned within the policy window, provided that the discharged energy is utilised within the State.
Additionally, stringent safety, environmental, and cybersecurity compliance protocols-including the adoption of domestically developed Energy Management Systems-have been instituted to protect critical infrastructure and ensure responsible battery lifecycle management.
Through this comprehensive blueprint, the state reinforces its leadership in renewable energy integration and long-term grid resilience, the policy added.
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