MP Power Management Invites Bids for 282.5 MW/1130 MWh BESS Project with VGF Support
MPPMCL invites bids for 282.5 MW/1130 MWh BESS projects with VGF support under BOO model jointly with Uttar Pradesh Power Corporation Ltd. (UPPCL).
May 27, 2026. By EI News Network
The tender has been floated jointly for Madhya Pradesh and Uttar Pradesh through a single-stage, two-envelope competitive bidding process. Selected projects will be eligible for VGF support of up to INR 12 lakh per MWh or 30 percent of the project capital cost, whichever is lower.
As the demand profiles of Madhya Pradesh and Uttar Pradesh are complementary in nature, the two states have decided to jointly procure energy storage capacity for six months each to optimise resources and costs. Under the arrangement, MPPMCL will act as the Lead Procurer (Procurer-1), while Uttar Pradesh Power Corporation Ltd. (UPPCL) will act as Procurer-2.
The utilities are jointly seeking procurement of discharge energy from ISTS-connected battery energy storage systems on an “on-demand” basis to meet requirements of their respective DISCOMs. The projects will involve aggregated BESS capacity of 282.5 MW/1130 MWh based on four-hour storage duration with single-cycle discharging operations.
The utility said project developers will have the flexibility to choose project locations at their own discretion, cost, risk and responsibility, subject to provisions specified in the Request for Selection (RfS) document. The responsibility for identification, acquisition or leasing, and possession of suitable land parcels will rest entirely with the selected Battery Energy Storage System Developers (BESSDs). Developers will also be responsible for charging operations of the BESS in accordance with provisions of the RfS and the Battery Energy Dispatch and Purchase Agreement (BEDPA).
As per the tender conditions, developers will also be required to comply with technical specifications, BESS characterisation and performance parameters detailed under Annexure-E of the RfS document.
The VGF assistance will be released in line with provisions under the RfS, BEDPA, and guidelines issued by the Ministry of Power through letters dated 2 February 2026 and 3 March 2026, including subsequent amendments and clarifications.
According to the bid schedule, the pre-bid meeting is scheduled on 29 May 2026 at the regional office of MPPMCL in Bhopal. Online bid submissions will close on 9 June 2026 at 3 PM and hard copy submissions are due by 11 June 2026 up to 3 PM. Techno-commercial bids will be opened on the same day from 3:30 PM onwards.
The utility has fixed the Earnest Money Deposit (EMD) at INR 4.8 lakh per MW. The bid document fee has been set at INR 25,000 plus GST, while the bid processing fee stands at INR 15 lakh plus GST.
MPPMCL said that it may conduct an e-Reverse Auction during the bidding process and reserves the right to cancel, withdraw or defer the tender in consultation with UPPCL before execution of the BEDPA.
The tender reflects growing momentum in India’s utility-scale battery storage sector as state utilities increasingly deploy BESS capacity to support renewable energy integration, grid balancing and peak demand management.
Refer the document link for more information.
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