Kerala State Electricity Board Limited has filed a petition with the state electricity regulatory commission seeking approval for a new tariff structure for a grid-scale battery storage project in Ernakulam.
The proposed project will be developed at the Brahmapuram substation and will feature a 250 MW / 500 MWh Battery Energy Storage System (BESS), aimed at improving grid efficiency and reliability amid rising renewable energy integration in the state.
Kerala’s increasing dependence on solar power has created challenges due to its intermittent generation, with peak electricity demand typically occurring during morning and evening hours. The BESS project is expected to address this gap by storing surplus solar energy during the day and supplying it during peak demand periods, reducing reliance on costly external power procurement.
The project has been selected under the central government’s Viability Gap Funding (VGF) scheme, with financial assistance of ₹90 crore against an estimated total cost of ₹600 crore. The bidding process saw participation from seven companies, with Shreyas Sortex Industries Private Limited emerging as the lowest bidder, quoting a tariff of ₹1.81 lakh per MW per month.
The system is designed with a 15-year operational life and a guaranteed availability of 95%, ensuring consistent long-term performance. Additionally, the project mandates at least 20% domestic content, aligning with India’s push for local manufacturing and value addition.
Kerala State Electricity Board Limited noted that the project excludes any trading margin, which is expected to generate savings of around ₹18 crore over its lifetime, further strengthening its economic viability.
The project is scheduled for commissioning by September 2027 and is expected to play a crucial role in stabilizing Kerala’s grid, enhancing renewable energy integration, and supporting the state’s transition toward a cleaner and more sustainable energy system.
