In a significant step towards enhancing grid reliability and managing peak power demand, Kerala State Electricity Board Limited (KSEBL) has filed a petition with the Kerala State Electricity Regulatory Commission seeking approval for a competitively discovered tariff for a large-scale battery energy storage project.
The proposed project involves the development of a 250 MW / 500 MWh standalone Battery Energy Storage System (BESS) at the Brahmapuram 220 kV substation. The system is designed to store surplus solar energy during daytime hours and dispatch it during peak demand periods, particularly in the morning and evening when renewable generation is limited.
The initiative is expected to reduce the state’s reliance on high-cost power purchases from electricity exchanges, thereby lowering overall procurement costs while improving grid stability.
The project tariff was discovered through a competitive bidding process, with Shreyas Sortex Industries Private Limited emerging as the successful bidder. The company quoted a tariff of ₹1,81,000 per MW per month, translating to approximately ₹3.59 per kWh—among the most competitive storage tariffs recorded in the state.
The project will receive financial support under the Government of India’s Viability Gap Funding (VGF) scheme through the Power System Development Fund, with Kerala allocated ₹90 crore. As the project is being implemented directly without intermediary agencies, it is expected to avoid trading margins and deliver cost savings of around ₹18 crore over a 15-year period.
Strategically located, the Brahmapuram substation will enable efficient grid support, with the battery system designed for a two-hour discharge cycle. The developer has committed to maintaining 95% system availability and an 85% round-trip efficiency, ensuring reliable performance.
In line with the ‘Make in India’ initiative, the project mandates a minimum of 20% domestic content, including locally developed energy management software, aimed at boosting indigenous manufacturing and technological capabilities.
The Letter of Award for the project was issued on February 6, 2026, with the Battery Energy Storage Purchase Agreement expected to be finalised shortly. The project is scheduled for commissioning by September 2027.
Once operational, the BESS facility is expected to play a key role in enhancing energy reliability, reducing costs, and supporting Kerala’s transition to a cleaner and more sustainable power system.
