MSEDCL has floated a tender for 2 GW/4 GWh battery energy storage projects in Maharashtra, with selected developers eligible for viability gap funding under the Ministry of Power's BESS scheme.
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has invited bids for the development of 2,000 MW/4,000 MWh (one cycle) of Battery Energy Storage System (BESS) capacity under a tariff-based competitive bidding process.
The selected developers will establish the projects on a build-own-operate (BOO) basis and enter into Battery Energy Storage Purchase Agreements (BESPAs) with MSEDCL. The projects will also be eligible for viability gap funding (VGF) of up to ₹1.8 million per MWh under the Ministry of Power’s BESS VGF Scheme.
According to the Request for Selection (RfS), the scope of work includes developing BESS projects across substations operated by MSEDCL, the Maharashtra State Electricity Transmission Company Limited (MSETCL) and the Central Transmission Utility (CTU). The selected developers will provide on-demand energy storage services to MSEDCL, which will have the contractual right to utilise the systems for a minimum of 6,300 charge-discharge cycles during the agreement period without any additional cost.
The total capacity has been divided equally into two categories. Part A comprises 1,000 MW/2,000 MWh of BESS projects to be established at MSEDCL and MSETCL substations. Part B includes 1,000 MW/2,000 MWh of co-located (interstate or intrastate) and standalone projects connected to the State Transmission Utility (STU) network.
Under the tender conditions, charging energy will be supplied by MSEDCL, while the stored electricity will be dispatched into the utility’s network based on operational instructions issued under the BESPA.
Interested bidders are required to pay a non-refundable document fee of ₹29,500 and submit an earnest money deposit (EMD) of ₹0.56 million per MW in the form of an electronic bank guarantee. Successful bidders must also furnish a performance bank guarantee (PBG) of ₹1.4 million per MW before signing the BESPA. The last date for submission of bids is July 22, 2026.