Tamil Nadu approves Battery Energy Storage Systems Policy 2026 targeting 2.5 GW capacity

Key facts

• The Tamil Nadu government approved the Tamil Nadu Battery Energy Storage Systems Policy, 2026, issued through an energy department notification, aiming to make the state India's foremost storage hub.
• The policy targets deployment of at least 2.5 GW, matching a 10 GWh storage capacity across the state during its operative period.
• Tamil Nadu Green Energy Corporation Limited is the nodal agency for the initiative, which aims to reduce power curtailment and optimise grid operations.
• New solar and hybrid energy projects exceeding 1 MW, commissioned from April 2027 onward, must integrate battery storage with a four-hour continuous discharge duration.
• A complete waiver of transmission and wheeling charges for 10 years applies to eligible projects commissioned within the policy window, provided the discharged energy is utilised within the State.
• The policy mandates safety, environmental, and cybersecurity compliance, including adoption of domestically developed Energy Management Systems.