Coal India Receives LoA for 320 MWh BESS Projects in Odisha from GRIDCO
Coal India has received a letter of award from GRIDCO, Odisha, for setting up four battery energy storage system (BESS) projects with a cumulative capacity of 80 MW/320 MWh across two clusters in Odisha, at an estimated cost of INR 400 crore.
May 01, 2026. By Mrinmoy Dey
The company secured the capacity in Solar Energy Corporation of India’s (SECI) auction in March 2026 for setting up six standalone BESS in Odisha with a cumulative capacity of 125 MW/500 MWh.
Coal India won four projects in two clusters with a capacity of 20 MW/80 MWh each. In Cluster-1 at Padampur and Bolangir, it quoted a tariff of INR 3.04 lakh/MW/month. The tariff for projects in Cluster-2 at Bhatli and Basta was INR 3.05 lakh/MW/month.
The estimated cost of the projects is INR 400 crore and must be completed within 18 months from the signing of BESPA, the company stated in a regulatory filing.
The projects must be set up under a build-own-operate (BOO) model. The BESSD must set up, operate and maintain a BESS, with the primary objective of making the energy storage facility available to the GRIDCO for charging/discharging of the BESS, on an 'on demand basis.
The projects will be eligible for viability gap funding (VGF) support at INR 18 lakh/MWh.
The projects must be set up inside the identified substations of the STU network in Odisha. Land identification and allocation for the projects will be under the scope of the GRIDCO/OPTCL owning the identified substations. Land will be provided on a right-to-use basis to the BESSD.
Setting up of the BESS and interconnection of the BESS with the STU network, including the construction of the new bay and safety of the equipment/personnel, will be under the scope of the BESSD.
Scheduling for charging and discharging of the BESS system will be under the scope of the SLDC/GRIDCO. The BESS must be charged by drawing power from the OPTCL network and discharged by injecting power into the OPTCL network.
The BESSD must guarantee a minimum system availability of 95 percent on an annual basis.
The application software of the energy management system (EMS) of the BESS must be developed indigenously within India. The use of refurbished or second-hand battery cells in the project is strictly prohibited.
In March 2026, Coal India secured a 187.5 MW/750 MWh BESS project from Telangana Power Generation Corporation at a tariff of INR 3.14 lakh/MW/month. The BESS plant will be set at the Choutuppal substation in Telangana.
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