Kerala's First Battery Energy Storage Project Construction Begins Saturday
Kerala's First Battery Storage Project Starts Construction

Kerala's Pioneering Battery Energy Storage Project Construction Commences

The construction of Kerala's first-ever battery energy storage project is set to begin on Saturday, marking a significant milestone in the state's renewable energy infrastructure. Electricity Minister K Krishnankutty will officially inaugurate the work for this groundbreaking initiative.

Project Specifications and Location

The 125 MW/500 MWh Battery Energy Storage System (BESS) facility is being established near the 220KV substation at Mylatti in Kasaragod district. This project represents a major advancement in energy storage technology for the region.

Funding and Implementation Model

The Kerala State Electricity Board (KSEB) is constructing the project with substantial financial support. The central government's viability gap funding of Rs 135 crore plays a crucial role in making this project feasible. In collaboration with the Solar Energy Corporation of India, the total investment amounts to approximately Rs 550 crore.

"The project is being implemented on a build-own-operate model based on tariffs without any upfront payment," KSEB stated in their Friday announcement. This innovative financing approach ensures the construction costs can be covered through savings from peak-time electricity purchase expenses.

Technological Significance

This facility is touted as India's first battery energy storage system capable of providing electricity continuously or intermittently for four hours. The BESS technology stores electricity from solar power plants and other renewable sources during daytime hours when generation costs are lower, then releases this stored energy during peak evening demand periods.

Construction Timeline and Benefits

With a relatively short construction period compared to traditional energy projects, this pioneering facility is expected to be completed by October 2026. The project promises to enhance grid stability, reduce dependence on peak-time power purchases, and support Kerala's transition toward sustainable energy solutions.

The implementation of this battery storage system represents a strategic investment in Kerala's energy future, combining innovative technology with practical financial models to create a more resilient and sustainable power infrastructure for the state.