GAIL (India) Limited has signed an agreement with TUSCO, a subsidiary of THDC India Limited, to develop a 600 MW solar power project with Battery Energy Storage System (BESS) in Uttar Pradesh, according to officials familiar with the deal. The project marks GAIL’s strategic shift toward renewable energy as India pushes to meet its 500 GW non-fossil fuel capacity target by 2030.
The solar farm will be constructed in the Bundelkhand region, an area with high solar irradiance but persistent energy poverty. Analysts note this is GAIL’s first major foray into utility-scale solar, though the gas giant previously piloted smaller renewable projects. “This partnership leverages TUSCO’s experience in hydro and solar projects with GAIL’s financial heft,” said an energy sector consultant speaking anonymously due to client relationships.
The inclusion of BESS addresses solar’s intermittency challenges, with the storage component expected to provide 120 MWh capacity. Project timelines remain undisclosed, but sources indicate construction could begin by late 2024 following land acquisition approvals. The initiative aligns with Uttar Pradesh’s Solar Policy 2022 aiming to install 22 GW of renewable capacity.
Industry watchers suggest the project’s success could prompt other state-owned oil and gas companies to accelerate renewable investments. However, some question whether GAIL has the technical expertise for large-scale solar deployment, traditionally focusing on gas infrastructure.