Maharashtra Power Utility Launches Tender for 2 GW Battery Storage Projects

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a tender seeking the development of 2,000 MW/4,000 MWh of battery energy storage system (BESS) capacity.

The projects will be developed under the Build-Own-Operate (BOO) model. The tender process will follow a single-stage e-bidding format, with both technical and financial proposals due by September 15. The minimum bid size allowed is 100 MW/200 MWh.

The battery storage facilities will be installed across multiple locations and connected to substations owned by either MSEDCL or the Maharashtra State Electricity Transmission Company (MSETCL). For standalone BESS installations, MSEDCL will provide land on a right-to-use basis. In the case of co-located projects at existing renewable energy sites with a power purchase agreement (PPA) with MSEDCL, land will need to be arranged by the bidder.

Each system must be capable of performing two full charge-discharge cycles per day with a two-hour discharge duration. Developers must ensure an annual availability of at least 95%, and all systems must be commissioned within 18 months of signing the agreement with MSEDCL.

To support project viability, the selected bidders will be eligible for Viability Gap Funding (VGF) of up to INR 180,000 per MWh (approximately USD 2,075 or EUR 1,788), disbursed in three phases.