MPPMCL Floats Tender for 750 MW/1,500 MWh Battery Storage Capacity in Madhya Pradesh
Madhya Pradesh Power Management Company (MPPMCL) has invited bids to develop 750 MW/1,500 MWh battery energy storage systems under tariff-based competitive bidding to support on-demand power supply and grid stability.
February 02, 2026. By EI News Network
The projects will be developed on a Build-Own-Operate (BOO) basis and are intended to provide storage capacity for two charge-discharge cycles per day to support “on-demand” power supply for the state grid.
The tender outlines deployment of four storage units comprising two units of 250 MW/500 MWh each and two units of 125 MW/250 MWh each. The bidding will follow a single-stage, two-envelope system through an e-tendering process.
The cost of the bid document has been fixed at INR 29,500 (including GST), while the bid processing fee is INR 15 lakh plus 18 per cent GST. Bidders are required to furnish a bid security/EMD of INR 2.20 lakh per MW. Pre-bid queries may be submitted up to 10:30 am on February 6, 2026, with the pre-bid meeting scheduled the same day. The last date for online bid submission is February 23, 2026 (up to 3:00 pm), while hard copies must be submitted by February 25, 2026 (up to 3:00 pm).
The techno-commercial bids will be opened on February 25, 2026, from 3:30 pm onwards. While successful bidders must furnish a Performance Bank Guarantee (PBG) of INR 11 lakh per MW before signing the Battery Energy Storage Purchase Agreement (BESPA).
Under the scope of work, selected Battery Energy Storage System Developers (BESSDs) will be required to set up storage facilities at substations, making capacity available to MPPMCL on an “on-demand” basis. The projects will be interconnected with the network of the State Transmission Utility, Madhya Pradesh Power Transmission Company Ltd. (MPPTCL).
Operationally, developers will charge the storage systems using pobesswer supplied by MPPMCL and inject electricity back into the grid in line with dispatch instructions issued by the State Load Dispatch Centre (SLDC) in consultation with MPPMCL. Power for charging will be provided without additional cost to the developer, subject to limits and conditions laid down in the RfS and BESPA.
Developers will be selected on the basis of the lowest tariff quoted for each identified location, and each project will correspond to a specific substation. Land acquisition and site development will be the sole responsibility of the developers. A 250 MW/500 MWh project will require around 15 acres of land, while a 125 MW/250 MWh project will need about 7.5 acres, preferably near the designated substations. No land will be provided by MPPMCL or MPPTCL. Developers may oversize their systems beyond the minimum capacity, but the rated power and energy installed will be verified at commissioning.
Developers must obtain connectivity approvals and bear the full cost of transmission infrastructure, bay construction and interconnection up to the delivery point. Transmission charges and losses beyond the delivery point will be borne by MPPMCL. Metering, forecasting, scheduling and deviation settlement will be carried out in accordance with regulatory provisions, with deviation penalties at the project end to be borne by the developer.
On eligibility, bidders may participate as Indian companies, foreign companies, SEBI-registered Alternative Investment Funds (AIFs), or consortia of these entities. Consortia must designate a lead member and, if selected, form a project company in India with the same shareholding structure as the consortium prior to signing the BESPA. Foreign companies selected on a standalone basis must incorporate an Indian special purpose vehicle (SPV) with at least 51 per cent shareholding, in compliance with foreign direct investment norms.
In line with government procurement guidelines, bidders from countries sharing land borders with India, or those having technology transfer arrangements with such entities, must register with the competent authority. Proprietorships, partnerships, trusts, NGOs and LLPs are not eligible to participate. Bidders and their affiliates must also not be classified as willful defaulters or be blacklisted by any government agency or international financial institution.
MPPMCL has also prescribed stringent financial eligibility criteria. Bidders must demonstrate a minimum net worth of INR 44 lakh per MW of the quoted capacity as of FY 2024–25 or at least seven days prior to bid submission. For the full 750 MW capacity, this translates into a net-worth requirement of about INR 330 crore. In the case of AIFs, eligibility will be assessed based on Assets Under Management (AUM). Consortium members’ cumulative net worth or AUM will be considered, and bidders (other than AIFs) may rely on the financial strength of affiliates, subject to commitments to provide equity and performance guarantees.
To establish liquidity, bidders must meet at least one of three conditions: a minimum annual turnover of INR 21.34 lakh per MW in the previous financial year; or Profit Before Depreciation, Interest and Taxes (PBDIT) of at least INR 4.268 lakh per MW; or an in-principle bank sanction committing a line of credit of INR 5.346 lakh per MW. Financial evaluation will be based on the latest unconsolidated audited accounts, with consolidated accounts accepted only where the bidder holds at least 26 per cent equity in the merged entities.
Foreign bidders must submit audited financial statements as per home-country norms, or provisional accounts certified by auditors and company officials where final accounts are not available.
Through this large-scale tender, MPPMCL aims to deploy utility-scale battery storage near key substations to improve grid reliability, provide flexible dispatch capability, and support the growing integration of renewable energy into Madhya Pradesh’s power system.
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