Tata Power gets approval to set up 100 MW battery energy storage system in Mumbai

Team Finance Saathi

    07/Apr/2025

What's covered under the Article:

  1. Tata Power receives MERC nod to set up a 100 MW battery energy storage system across Mumbai.

  2. The BESS project will improve power supply during grid failures, supporting key city infrastructure.

  3. The system will be centrally monitored from Tata Power’s PSCC and integrated into future smart grids.

Tata Power, India’s leading integrated power company, has received approval from the Maharashtra Electricity Regulatory Commission (MERC) to set up a 100 MW Battery Energy Storage System (BESS) in Mumbai. This major infrastructure upgrade aims to reinforce the city’s resilience to power disturbances, ensure backup support for essential services, and streamline energy management through advanced technology and automation.

The company announced the approval via an official filing on Monday, underscoring its continued commitment to transforming urban energy infrastructure with sustainable and smart energy solutions.


Project Overview and Strategic Importance

The newly approved 100 MW BESS project will be installed across 10 strategic locations in Mumbai over the next two years. These locations are specifically chosen based on their proximity to load centres in the city’s distribution network. Once operational, the BESS will be centrally monitored and controlled from Tata Power’s Power System Control Center (PSCC).

This advanced deployment is expected to revolutionise how Mumbai handles peak load management, grid stability, and emergency recovery.


Advanced Features and Emergency Backup

One of the standout features of this new energy system is the inclusion of black start functionality. This is a critical mechanism that allows swift restoration of power supply to vital city infrastructure such as:

  • Hospitals

  • Metro systems

  • Airports

  • Data centres

In the event of a grid failure or blackout, the BESS will ensure that these critical facilities are up and running within minutes. The importance of such a system cannot be overstated in a megacity like Mumbai, which is highly dependent on continuous power for both residential and commercial operations.


Power Grid Stability and Peak Demand Efficiency

The battery energy storage system is designed not just for emergency backup, but also for enhancing grid performance during normal operations. Some of its key operational advantages include:

  • Reactive power management to stabilise voltage levels across the grid

  • Optimisation of energy flow during peak demand hours

  • Reduction in power losses, contributing to a more efficient and sustainable power distribution model

This dual functionality makes the BESS project both a reliable backup system and a daily efficiency booster.


DERMS Integration for Smart Grid Evolution

Tata Power’s future plans also include integrating the BESS system with its Distributed Energy Resource Management System (DERMS). This integration will:

  • Enable real-time management of distributed energy sources

  • Provide predictive analytics to improve decision-making during grid operations

  • Support further automation, making the grid smarter and more adaptive to demand-supply fluctuations

DERMS integration is a step towards building a modern, intelligent, and responsive power infrastructure, vital for a fast-growing city like Mumbai.


MERC’s Role and Strategic Green Push

The Maharashtra Electricity Regulatory Commission (MERC) plays a pivotal role in enabling clean and smart energy solutions in the state. By approving this project, MERC:

  • Reaffirms its support for renewable and energy-efficient technologies

  • Encourages utilities like Tata Power to innovate for a resilient urban power ecosystem

  • Aligns with the broader vision of a low-carbon, digitally empowered energy landscape

Such regulatory backing is essential for scaling innovative energy technologies and achieving national energy transition goals.


Tata Power’s Growing Renewable Footprint

Tata Power currently manages a diversified energy portfolio of 15.6 GW, including:

  • Thermal and hydroelectric power

  • Solar and wind energy

  • Energy storage and EV charging solutions

The BESS project adds a new layer to this portfolio, showcasing the company's commitment to next-gen energy systems. Tata Power has already been at the forefront of several green energy initiatives, including:

  • India's largest solar rooftop installations

  • EV charging station expansions

  • Grid-connected hybrid renewable projects


Improved Citywide Power Resilience

Mumbai, a dense urban hub with high commercial activity, often faces stress on its power grid, especially during peak demand or monsoon-related issues. The BESS installation will significantly improve:

  • Load balancing during consumption spikes

  • Response time during outages

  • Operational flexibility across distribution nodes

By focusing on distributed storage, the system will also prevent over-reliance on a centralised power supply, a key feature for urban resilience.


Implementation Timeline and Rollout

Tata Power plans to complete the installation of the entire 100 MW BESS across 10 locations within the next two years. Each location will be selected based on:

  • Load sensitivity

  • Proximity to critical infrastructure

  • Integration capability with the existing grid

Each BESS installation will be connected to a central system, enabling coordinated operation, alerts, and performance optimisation.


Real-Time Monitoring Through PSCC

The entire system will be monitored via Tata Power’s Power System Control Center (PSCC), which provides:

  • Centralised visibility into energy flow, storage levels, and fault detections

  • Automated controls for activation during grid failures

  • Real-time analytics for improving operational planning

This level of monitoring ensures that BESS is not just a passive backup, but an active player in power grid performance.


Conclusion: A Leap Towards Smarter Energy Infrastructure

The 100 MW BESS project by Tata Power is a milestone in India's energy evolution, especially in the urban power sector. With advanced features like black start capabilities, peak management, and DERMS integration, it brings a transformational upgrade to Mumbai’s power infrastructure.

Key takeaways for readers:

  • The system will enhance reliability, speed, and safety of power supply in critical zones.

  • It will reduce the impact of blackouts on the city’s infrastructure and economy.

  • It marks Tata Power’s continued leadership in deploying smart energy solutions.

As Indian cities move toward smarter infrastructure and climate-resilient utilities, projects like these will become essential. Tata Power’s BESS project isn’t just a tech upgrade—it’s a strategic investment in the future of energy management.

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