How NTPC plans to use thermal battery storage to meet peak power demand
NTPC has awarded 5GWh of battery storage capacity for storing thermal power from coal-based plants to meet the growing peak power demand in the country
- May 27, 2026,
- Updated May 27, 2026 12:47 PM IST
Battery storage was always linked to renewable power due to its unavailability during non-solar hours. Now, thermal power plants are utilising battery storage to remain online and support peak demand by supplying additional power during peak hours.
NTPC has awarded 5GWh of Battery Energy Storage System (BESS) projects, which were allocated to the company under the Viability Gap Funding (VGF) scheme of the Power System Development Fund (PSDF).
Don't Miss: NTPC shares in consolidation phase post recovery, should you book profit?
It was to optimize the utilization of existing thermal generation and transmission infrastructure and to ensure reliable and economical power supply during non-solar hours. As the peak power demand touched 270GW this month, the power generators are adopting all measures to meet the peak power demand.
Where will it come up?
The allocated capacity is planned across 14 NTPC thermal power stations based on the availability of Unrequisitioned Surplus (URS) power.
The Central Electricity Regulatory Commission has issued regulations 20 March 2026 for the determination of tariff from the installation of Battery Energy Storage Systems at thermal generating stations.
The integration of BESS with thermal plants will reduce cycling, enable operation near optimal efficiency, lower maintenance and O&M costs, and enhance overall plant life.
There is a cost economic also at play as operating thermal power plants at low capacity to allow higher injection of renewable energy into the grid during the day is expensive and leads to a higher per unit cost of coal-fired electricity.
The battery storage allows them to absorb excess energy when renewables are overproducing and discharge it when renewables are underperforming during evening, leading to a stable supply.
Battery storage was always linked to renewable power due to its unavailability during non-solar hours. Now, thermal power plants are utilising battery storage to remain online and support peak demand by supplying additional power during peak hours.
NTPC has awarded 5GWh of Battery Energy Storage System (BESS) projects, which were allocated to the company under the Viability Gap Funding (VGF) scheme of the Power System Development Fund (PSDF).
Don't Miss: NTPC shares in consolidation phase post recovery, should you book profit?
It was to optimize the utilization of existing thermal generation and transmission infrastructure and to ensure reliable and economical power supply during non-solar hours. As the peak power demand touched 270GW this month, the power generators are adopting all measures to meet the peak power demand.
Where will it come up?
The allocated capacity is planned across 14 NTPC thermal power stations based on the availability of Unrequisitioned Surplus (URS) power.
The Central Electricity Regulatory Commission has issued regulations 20 March 2026 for the determination of tariff from the installation of Battery Energy Storage Systems at thermal generating stations.
The integration of BESS with thermal plants will reduce cycling, enable operation near optimal efficiency, lower maintenance and O&M costs, and enhance overall plant life.
There is a cost economic also at play as operating thermal power plants at low capacity to allow higher injection of renewable energy into the grid during the day is expensive and leads to a higher per unit cost of coal-fired electricity.
The battery storage allows them to absorb excess energy when renewables are overproducing and discharge it when renewables are underperforming during evening, leading to a stable supply.