TNGECL and NVVN Kerala BESS Tenders Close at Lower Than Expected Tariffs

Contrary to market expectations of rising tariffs, two major standalone Battery Energy Storage System (BESS) tenders floated by Tamil Nadu Green Energy Corporation Ltd. (TNGECL) and NTPC Vidyut Vyapar Nigam Ltd. (NVVN), Kerala, have concluded at competitive rates, despite rising costs.

Industry experts had anticipated higher bids due to metal prices rising nearly threefold, reductions in battery export VAT, volatility in the US dollar, and reports of several original equipment manufacturers cancelling contracts signed at earlier, lower prices. These factors had led to expectations of upward tariff movement in upcoming tenders.

Defying these assumptions, the TNGECL tender for 375 MW / 1,500 MWh, the first BESS tender in India with a 1.5 cycle requirement over a 15-year period, was awarded at a tariff of INR 3.15 lakh per MW per month. The NVVN (Kerala) tender for 250 MW / 500 MWh, with 420 cycles annually for 15 years, closed at INR 1.81 lakh per MW per month.

The tenders also saw the entry of new participants in India’s BESS market, including Shreyas Sortex Industries and Eagle Construction, highlighting growing competition and increasing interest in large-scale energy storage deployment.

A detailed review of bids in the NVVN (Kerala) tender shows a narrow competitive spread. Shreyas Sortex Industries Pvt. Ltd. emerged as the lowest bidder at INR 1,81,000 per MW per month, followed by OPG Power Generation Pvt. Ltd. at INR 1,82,000 and Oriana Power Ltd. at INR 2,16,000. Other bidders included DB Power BESS Storage Ltd. at INR 2,21,000, NTPC Green Energy Ltd. at INR 2,22,000, and Power Grid Corporation of India Ltd. at INR 2,24,600.

Separately, the TNGECL tender was conducted through the Tamil Nadu eProcurement reverse auction system, with a reserve price of INR 3,60,000 and a decremental bid step of INR 1,000. The auction commenced on January 29, 2026, at 3:00 pm and concluded on January 30, 2026, after an auto-extension.

In the TNGECL auction, M/s Eagle Construction Co submitted the lowest bid at INR 3,15,000 per MW per month, followed closely by OPG Power Generation Pvt. Ltd. at INR 3,16,000 and Onward Solar Power Pvt. Ltd. at INR 3,25,000. Other bids were placed by Forceone SD Pvt. Ltd. at INR 3,27,000, Brics Renewable Energy Pvt. Ltd. at INR 3,28,000 and Sri Srinivasa Constructions I Pvt. Ltd. at INR 3,32,000. The tender was issued by TNEB Ltd. under TNGECL on November 13, 2025.

Analysts noted that despite cost headwinds, strong participation and aggressive tariff discovery reflect sustained market confidence in standalone BESS projects.