Kerala, NTPC Join Hands for 2,000 MWh Battery Energy Storage Project at Kayamkulam
Politics NationalPosted by admin on 2026-10-08 05:41:57 |
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The Kerala government has taken a major step toward strengthening the state's electricity infrastructure by partnering with NTPC Ltd to establish a 2,000 MWh Battery Energy Storage System (BESS) at Kayamkulam in Alappuzha district.
The proposed project is aimed at addressing Kerala's growing electricity requirements and improving the state's ability to store and use power when demand is high. The decision was announced by Chief Minister V.D. Satheesan following discussions with senior NTPC officials in New Delhi.
KSEB, NTPC and NGEL to Sign MoU
The Kerala State Electricity Board (KSEB) will enter into a Memorandum of Understanding with NTPC and NTPC Green Energy Limited (NGEL) for implementing the battery storage project.
The facility is proposed to be developed on NTPC-owned land at Kayamkulam, where the currently non-operational Rajiv Gandhi Combined Cycle Power Plant is located. The storage system is expected to help preserve surplus electricity generated during periods of lower demand and make it available when the grid requires additional power.
The initiative comes as Kerala looks for ways to improve power availability and reduce pressure on the electricity system during periods of high demand.
27 MW Solar Project to Be Accelerated
The discussions also covered NTPC's proposed 27 MW solar power project at Kayamkulam. The state government has agreed to provide the necessary support to speed up implementation of the project.
The combination of renewable generation and large-scale battery storage is expected to strengthen Kerala's ability to manage fluctuations in power supply and demand.
Kerala to Receive Up to 300 MW From Maharashtra
As part of the wider agreement, NTPC has agreed to supply Kerala with up to 300 MW of electricity from its Sinnar project in Maharashtra. According to the Chief Minister, the electricity will be supplied at a rate of ₹5.18 per unit.
NTPC has also indicated its willingness to supply electricity from its Ramagundam power plant, with a Power Purchase Agreement expected to be signed for the arrangement.
These additional sources are expected to provide some relief as Kerala deals with increasing electricity demand.
State Seeks Dedicated Power Plant
Kerala has also asked NTPC to establish a dedicated power plant within the state to meet its long-term electricity requirements.
Chief Minister Satheesan said that securing reliable power sources is important not only for dealing with the current situation but also for preparing Kerala's electricity system for future demand.
NTPC has also agreed to make its professional and technical expertise available to KSEB. The support is expected to help improve the utility's management, technical operations and adoption of modern power-management systems.
Other Battery Storage Projects Face Delay
While the Kayamkulam project is moving forward, two other BESS projects being developed by KSEB at Pothencode in Thiruvananthapuram district and Sreekandapuram in Kannur district are expected to take longer than initially planned.
Each project has a capacity of 80 MWh, giving them a combined capacity of 160 MWh. They are now expected to be commissioned by March 2027, instead of the earlier target.
A Major Step Toward Energy Security
The Kayamkulam battery storage project, additional power procurement and proposed renewable-energy initiatives form part of Kerala's broader effort to improve electricity security.
With renewable energy generation increasing, large-scale energy storage can play an important role in balancing supply and demand. The planned 2,000 MWh BESS, along with the proposed solar project and additional power arrangements with NTPC, could therefore become an important component of Kerala's long-term energy strategy.