Coal India Limited has awarded a Battery Energy Storage System (BESS) project in Choutuppal, Telangana, to Pace Digitek Limited at a cost of ₹1,073.74 crore. Pace Digitek emerged as the successful bidder among 11 participants in the tender, expanding its presence in India’s grid-scale battery storage sector.
The project adds to the development of standalone battery energy storage infrastructure in Telangana, where large-scale storage systems are being planned to improve electricity supply management and support grid stability. The award also strengthens Pace Digitek’s existing portfolio of energy storage projects in Telangana and Delhi.
Several other companies and joint ventures participated in the tender but were not selected. These included Kosol Energy–DEC Infrastructure, KPI Green–Amara Raja, Larsen & Toubro (L&T), Jackson Limited, Waaree Renewable Technologies and O2 Power, among others.
Key Details of the Coal India BESS Project
- Project location: Choutuppal, Telangana.
- Project developer: Coal India Limited.
- Successful bidder: Pace Digitek Limited.
- Project cost: ₹1,073.74 crore.
- Tender participation: 11 bidders.
- Technology: Standalone Battery Energy Storage System (BESS).
Coal India Also Secures 750 MWh BESS Project in Telangana
Coal India has also secured a 187.5 MW/750 MWh standalone BESS project associated with Telangana State Power Generation Corporation Limited (TSGENCO). The project is designed to provide four hours of energy storage and was awarded at a tariff of ₹3.14 lakh per MW per month.
With a rated power capacity of 187.5 MW and an energy storage capacity of 750 MWh, the system is designed to discharge electricity over a four-hour period at its rated output, subject to operational conditions.
Standalone BESS projects can store electricity when it is available and release it during periods of higher demand or lower generation. Such systems can support electricity grid balancing and help utilities manage fluctuations in power supply and consumption.
Pace Digitek has previously secured projects in Telangana through tenders floated by Telangana State Power Generation Corporation Limited.
In March 2025, the company secured a share of TSGENCO’s 250 MW/500 MWh standalone BESS tender, which was awarded to three successful bidders for different portions of the project.
The other successful bidders included:
- Bondada Engineering: Secured 50 MW at a tariff of ₹2.40 lakh per MW per month.
- TrueRE–Oriana Power: Secured 50 MW at a tariff of ₹2.45 lakh per MW per month.
The earlier award marked another step in Pace Digitek’s participation in Telangana’s standalone battery storage market. The latest Choutuppal project further expands the company’s presence in the state’s developing energy storage sector.
Beyond Telangana, Pace Digitek has also received a Letter of Intent (LoI) from BSES Rajdhani Power Limited for a 57.5 MW/115 MWh standalone BESS project in Delhi.
The project covers four grid substations and is intended to add battery storage capacity to the electricity distribution network.
The project is divided across the following locations:
- Sagarpur–DESU Colony: 30 MW/60 MWh.
- Bindapur: 15 MW/30 MWh.
- Hari Nagar: 7.5 MW/15 MWh.
- G4: 5 MW/10 MWh.
Together, these installations account for 57.5 MW of power capacity and 115 MWh of energy storage capacity.
The Delhi project extends Pace Digitek’s storage portfolio beyond Telangana and into urban electricity distribution networks, where battery systems can support local power management and grid operations.
Battery Energy Storage Systems are gaining importance as India expands renewable energy generation and works to improve the reliability of its electricity supply. Solar and wind generation can vary depending on weather conditions and the time of day, making storage an important component of power system planning.
Large-scale BESS installations can store electricity and discharge it when required. Depending on their design and operating arrangements, they can support peak-demand management, grid balancing and the integration of renewable energy into the electricity network.
The development of projects in Telangana and Delhi reflects the growing role of standalone battery storage in utility-scale power infrastructure. For Pace Digitek, the Choutuppal award adds to its existing project portfolio and strengthens its participation in India’s expanding energy storage market.
Coal India Limited (CIL) is a Government of India public-sector enterprise under the Ministry of Coal and one of the world’s largest coal-producing companies. Its primary operations include coal mining and supply for India’s electricity generation and industrial sectors. The company’s participation in battery energy storage projects represents an expansion into the country’s broader energy infrastructure development.
| Location | Choutuppal, Telangana |
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