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Solar Energy Corporation of India Ltd (SECI) has signed a battery energy storage sale agreement (BESSA) with Kerala State Electricity Board (KSEB) for a 125 MW/500 MWh grid-connected standalone battery energy storage system (BESS) project. The project was won by JSW Energy at a tariff of INR 4.41 lakh/MW/month in an auction conducted by SECI in February 2025. The tender was floated in December 2024.
JSW Energy will be responsible for developing, operating, and maintaining the BESS in Kerala, making it available to KSEB for on-demand charging and discharging. The project will be connected to the Mylatti 220 kV substation in Kasaragod, where an existing 110 kV bay is available. JSW Energy has the option to extend another bay if required.
To support the project’s financial viability, JSW Energy will receive viability gap funding (VGF) of INR 27 lakh/MWh or 30 percent of the total project cost, whichever is lower. JSW Energy must ensure that the BESS operates efficiently, maintaining 95 percent monthly availability and a minimum roundtrip efficiency of 85 percent.
The system must be available for at least one full operational cycle per day, while KSEB can utilize it for up to two cycles daily, with a maximum limit of 40 cycles per month and 400 cycles per year. The project is expected to support the grid stability and flexibility in Kerala, while also contributing to the state’s renewable energy goals. The signing of this agreement marks a significant milestone in the growth of the energy storage sector in India.