NLC India, through its subsidiary NLC India Renewables, has finalized the award for a major battery energy storage project aimed at strengthening renewable energy integration and grid reliability in Tamil Nadu. The company has selected Pace Digitek as the engineering, procurement, and construction (EPC) contractor for the deployment of a 250 MW/500 MWh Battery Energy Storage System (BESS). The project, valued at nearly ₹7,09.919 crore including GST, marks another significant development in India’s rapidly growing clean energy and storage sector.
The large-scale storage system will be installed on a turnkey basis across three important substations operated by the Tamil Nadu Transmission Corporation (TANTRANSCO), namely Ottapidaram, Annupankulam, and Kayathar. Pace Digitek, through its energy storage division Lineage Power, will be responsible for the complete execution of the project. The company’s scope of work includes designing and engineering the battery storage systems, manufacturing and supplying the equipment, transportation to project sites, unloading, storage, erection, testing, and final commissioning of the facilities. However, the supply of standard power transformers has been kept outside the company’s direct scope.
Apart from construction and commissioning, Pace Digitek will also undertake long-term operation and maintenance services for the project. The company will manage the battery storage assets for a period of 12 years after the project achieves commercial operation. According to the contract terms, the entire 250 MW/500 MWh capacity must be fully commissioned within 12 months from the issuance of the official letter of award.
The project originates from an earlier initiative of the Tamil Nadu Green Energy Corporation, which had selected NLC India for the development of standalone battery energy storage systems under a build-own-operate model supported by viability gap funding. Following this, NLC India floated a domestic EPC tender in early 2026 to identify a suitable implementation partner.
The project is expected to play a crucial role in supporting grid stability, managing peak electricity demand, and balancing the intermittent supply of renewable energy generated from solar and wind projects across Tamil Nadu.
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