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Kerala Greenlights Major 125 MW Battery Storage Project in Mylatti
The Kerala State Electricity Regulatory Commission (KSERC) has approved a groundbreaking 125 MW/500 MWh Battery Energy Storage System (BESS) at Mylatti Substation. This strategic project strengthens Kerala’s renewable energy infrastructure as solar adoption grows exponentially, serving as a massive power reserve for the state’s clean energy needs.
Strategic Location: Why Mylatti Substation Was Chosen
Kasargod district’s Mylatti location addresses chronic transmission bottlenecks. The substation will host lithium-ion batteries (similar to Tesla Megapack or Fluence systems) capable of powering 250,000 homes for two hours during outages – enough to meet Kannur district’s peak demand.
Optimal Battery Specifications for Grid Needs
The 500 MWh storage capacity with 125 MW output delivers four-hour discharge capability, ideal for Kerala’s 23% evening demand spike from 6-10 PM as solar output declines. This removes reliance on polluting diesel generators during peak periods.
Beyond Capacity: The Hidden Grid Benefits
While storage capacity grabs headlines, the real breakthrough is voltage stabilization. Kerala’s grid suffers 8-12% monsoon voltage swings from hydro fluctuations. Battery storage responds in milliseconds versus minutes for conventional plants – equivalent to upgrading from dial-up to broadband connectivity.
Cost Analysis vs Conventional Solutions
At ₹5.2 crore/MW (~$700k), the ₹650 crore project appears expensive. However, it compares favorably to Kerala’s ₹1,100 crore thermal peaking plants expenditure last year. Battery systems eliminate fuel supply chain vulnerabilities during Kerala’s frequent monsoon floods.
Synergy With Kerala’s Solar Expansion
This approval coincides with Kerala’s 1,000 MW floating solar initiative. Previously, developers hesitated due to duck curve economics. Now, energy traders can store midday solar surpluses (₹2/kWh) and sell during premium evening slots (₹8/kWh).
Boosting Local Manufacturing
KSERC’s 35% domestic content requirement boosts companies like Kochi-based Elxsi Energy developing battery management systems. This mirrors Gujarat’s success in growing its solar inverter industry through similar policies.
Future Directions for Kerala’s Energy Storage
Watch for two key developments: Commercial rooftop solar-plus-storage PPAs (already piloted at Thiruvananthapuram Airport) and hybrid hydro-BESS plants. The 60 MW Idukki project may become Kerala’s first test case for this integrated approach.
This initiative represents more than infrastructure – it transforms grid reliability paradigms. As KSERC members noted: “We’re not just building batteries.”
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