Tata Power Signs First Battery Storage Deal with NHPC for Kerala Project
Tata Power Renewable to Build Battery Energy Storage System to Support Kerala’s Green Energy Goals
Tata Power Renewable Energy Limited (TPREL), a part of Tata Power, has signed its first-ever Battery Energy Storage Purchase Agreement (BESPA) with NHPC Limited, a government-owned power company. This marks a major step for Tata Power in the battery storage sector.
The project was awarded through NHPC’s BESS Tranche-I tender, which used a competitive bidding process. The Kerala State Electricity Board (KSEB) will be the end user of this system.
According to Tata Power’s statement, the project will set up a 30 MW/120 MWh battery energy storage system (BESS) at a 220 kV substation in Kerala. The goal is to help the state manage peak power demand, improve grid stability, and support the integration of renewable energy like solar and wind into the system.
This project is part of a larger effort by NHPC to build 125 MW/500 MWh of standalone battery storage in Kerala. The initiative is backed by the Viability Gap Funding (VGF) scheme and follows guidelines from India’s Ministry of Power.
The agreement is for 12 years, and the project is expected to be completed in 15 months. Once operational, the system will allow Kerala to better use renewable energy around the clock and strengthen the state’s power grid.
This is not Tata Power’s first experience with battery storage. It is already running a solar and BESS project in Rajnandgaon, Chhattisgarh, which includes a 100 MW solar power plant and a 120 MWh battery system. That project was developed under an EPC contract awarded by the Solar Energy Corporation of India (SECI).
However, the new deal with NHPC is Tata Power’s first win in the standalone BESS market—a growing sector that focuses only on energy storage without a direct solar or wind component.
With this new project, Tata Power Renewable’s total renewable energy capacity now reaches 10.9 GW, which includes 5.6 GW of operational projects (4.6 GW solar and 1 GW wind), and 5.3 GW currently under development.
This project supports India’s national goal of achieving 500 GW of non-fossil fuel power capacity by 2030.
