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MSEDCL Invites Bids for 2 GW/4 GWh Battery Energy Storage Projects
MSEDCL has floated a tender to develop 2,000 MW/4,000 MWh of Battery Energy Storage Systems, comprising 1,000 MW/2,000 MWh at MSETCL/MSEDCL substations and 1,000 MW/2,000 MWh as co-located or standalone STU-connected projects, with VGF support of up to INR 18 lakh/MW. Bid submission ends on July 22, 2026.
July 02, 2026. By Mrinmoy Dey
Maharashtra State Electricity Distribution Company (MSEDCL) has floated a tender for setting up 2,000 MW/4,000 MWh (1 Cycle) Battery Energy Storage Systems (BESS).
While BESS of capacity 1,000 MW/2,000 MWh must be set up at MSETCL/MSEDCL substations (Part-A), BESS of capacity 1,000 MW/2,000 MWh can be developed as co-located (Inter-State/Intra-State) and standalone STU-connected projects.
The RfS retains the provision allowing MSEDCL to use the BESS for at least 6,300 cycles during the contract period at no additional cost. This is significant as the Appellate Tribunal for Electricity had earlier set aside an earlier 2 GW/4 GWh BESS tender which was approved by the Maharashtra Electricity Regulatory Commission (MERC), ruling that increasing the utilisation requirement from the original 5,475 cycles to 6,300 cycles constituted a material change to the tender conditions and ordered a fresh auction.
The projects will be eligible for Viability Gap Funding (VGF) support of up to 18 lakh/MW.
Bidders must pay INR 29,500 as a tender document fee. Further, they must deposit INR 15 lakh (plus GST) as a tender processing fee. They also need to furnish INR 4.2 lakh/MW as an earnest money deposit (EMD). Selected bidders must deposit INR 14 lakh/MW as a Performance Bank Guarantee (PBG).
The last date for submission of bids is July 22, 2026. The techno-commercial bids will be opened on July 23, 2026.
Both Part-A and Part-B will be evaluated independently. Minimum bid capacity for both the parts will be 50 MW/100 MWh and the minimum incremental bid capacity must be 50 MW/100 MWh.
The battery energy storage purchase agreement (BESPA) shall be valid for a period of 15 years.
The BESSD must guarantee a system availability of at least 95 percent on an annual basis. It must also guarantee a minimum AC to AC round-trip efficiency (RtE) of 85 percent for the system on a monthly basis.
The Energy Management System (EMS) application software for the BESS projects must be indigenous. The BESSD ensure a minimum local content of 20 percent of the total project cost. This minimum local content requirement shall include, inter alia, the indigenously developed EMS application software.
The net worth of the bidder must be at least INR 70 lakh/MW as on the last date of the previous financial year or as on the day at least 7 days prior to the bid submission deadline.
While BESS of capacity 1,000 MW/2,000 MWh must be set up at MSETCL/MSEDCL substations (Part-A), BESS of capacity 1,000 MW/2,000 MWh can be developed as co-located (Inter-State/Intra-State) and standalone STU-connected projects.
The RfS retains the provision allowing MSEDCL to use the BESS for at least 6,300 cycles during the contract period at no additional cost. This is significant as the Appellate Tribunal for Electricity had earlier set aside an earlier 2 GW/4 GWh BESS tender which was approved by the Maharashtra Electricity Regulatory Commission (MERC), ruling that increasing the utilisation requirement from the original 5,475 cycles to 6,300 cycles constituted a material change to the tender conditions and ordered a fresh auction.
The projects will be eligible for Viability Gap Funding (VGF) support of up to 18 lakh/MW.
Bidders must pay INR 29,500 as a tender document fee. Further, they must deposit INR 15 lakh (plus GST) as a tender processing fee. They also need to furnish INR 4.2 lakh/MW as an earnest money deposit (EMD). Selected bidders must deposit INR 14 lakh/MW as a Performance Bank Guarantee (PBG).
The last date for submission of bids is July 22, 2026. The techno-commercial bids will be opened on July 23, 2026.
Both Part-A and Part-B will be evaluated independently. Minimum bid capacity for both the parts will be 50 MW/100 MWh and the minimum incremental bid capacity must be 50 MW/100 MWh.
The battery energy storage purchase agreement (BESPA) shall be valid for a period of 15 years.
The BESSD must guarantee a system availability of at least 95 percent on an annual basis. It must also guarantee a minimum AC to AC round-trip efficiency (RtE) of 85 percent for the system on a monthly basis.
The Energy Management System (EMS) application software for the BESS projects must be indigenous. The BESSD ensure a minimum local content of 20 percent of the total project cost. This minimum local content requirement shall include, inter alia, the indigenously developed EMS application software.
The net worth of the bidder must be at least INR 70 lakh/MW as on the last date of the previous financial year or as on the day at least 7 days prior to the bid submission deadline.
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