JSW Energy Secures SECI’s 125 MW/500 MWh BESS Project in Kerala

JSW Energy has secured a contract to develop a 125 MW/500 MWh standalone battery energy storage system (BESS) in Kerala through the Solar Energy Corporation of India’s (SECI) latest auction.

The company won the bid with a tariff of INR 441,000 per MW per month, reinforcing its position in India’s energy storage sector.

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. This initiative aims to strengthen Kerala’s energy storage infrastructure, improving grid stability and power management.

To support the project’s financial viability, JSW Energy will receive viability gap funding (VGF) of INR 27 lakh per MWh or 30 percent of the total project cost, whichever is lower. The company must ensure that the BESS operates efficiently, maintaining 95% monthly availability and a minimum roundtrip efficiency of 85 percent.

Additionally, the system must be available for at least one full operational cycle per day, while the Kerala State Electricity Board (KSEB) can utilize it for up to two cycles daily, with a maximum limit of 40 cycles per month and 400 cycles per year.

SECI requires JSW Energy to use proven and commercially viable energy storage technologies that comply with industry standards to mitigate project risks. The company has been granted flexibility in commissioning, allowing phased implementation without penalties, provided that at least 50 percent of the MWh capacity is completed in the first phase.

The entire project must be commissioned within 15 months of signing the storage agreement, with financial closure required within nine months. The development of this large-scale BESS is expected to enhance Kerala’s ability to integrate renewable energy sources and ensure a more reliable power supply.

With SECI driving the adoption of energy storage through strategic tenders, JSW Energy’s successful bid highlights its commitment to supporting India’s renewable energy goals and strengthening the national grid’s resilience.