Tata Power Renewable Inks First Battery Storage Deal with NHPC for Kerala Project

Tata Power Renewable Energy Ltd (TPREL) has signed its first-ever agreement for a standalone battery energy storage system, stepping into a space that’s increasingly seen as critical to India’s renewable energy future.

The agreement, inked with NHPC Ltd, will see TPREL set up a 30 MW / 120 MWh battery storage project in Kerala. The system will be located at a 220 kV substation and is expected to be up and running in about 15 months.

The project is part of a broader initiative by NHPC to support the Kerala State Electricity Board (KSEB) through its first tranche of battery storage tenders. Once operational, the system will run under a 12-year energy storage contract, aligned with central government guidelines.

For TPREL, this marks a shift. While it has handled solar-plus-storage projects before like the one in Rajnandgaon, Chhattisgarh this is the first time it’s developing a standalone battery storage facility.

Kerala, where grid congestion and peak demand issues have persisted, is seen as a key market for such solutions. This system is expected to improve grid reliability, manage load balancing, and enable better renewable integration, especially during non-solar hours.

The storage project is also a part of NHPC’s larger goal of developing 125 MW / 500 MWh of BESS capacity across the state. The plan follows a tariff-based competitive bidding (TBCB) route and benefits from Viability Gap Funding (VGF) support.

The move fits into India’s national agenda of building 500 GW of non-fossil fuel capacity by 2030. Storage particularly battery-based systems is increasingly being seen as the key to making renewable power more dependable and grid-friendly.

With this latest project win, TPREL’s overall renewable energy portfolio has grown to 10.9 GW. That includes 5.6 GW of operational assets 4.6 GW from solar and 1 GW from wind and 5.3 GW currently under development. The company said the deal not only strengthens its presence in southern India but also reinforces its focus on dispatchable, clean energy and long-term grid stability.

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