MPPMCL Floats Mega 750 MW / 1,500 MWh BESS Tender

Madhya Pradesh Power Management Company Limited (MPPMCL) has issued a Request for Selection (RfS) inviting bids to develop a 750 MW / 1,500 MWh standalone utility-scale Battery Energy Storage System (BESS) in Madhya Pradesh under a tariff-based competitive bidding process. The tender marks one of the most significant state-level BESS procurement initiatives in India to date, aimed at enhancing grid reliability and supporting flexible power dispatch.

Project Configuration and Structure

Under the tender, the total 750 MW / 1,500 MWh capacity is structured into four discrete units:

2 units of 250 MW / 500 MWh each, and
2 units of 125 MW / 250 MWh each.

Together, these will offer up to two full charge-discharge cycles per day, facilitating “on-demand” energy dispatch.

Procurement Model

Model: Build-Own-Operate (BOO) basis.
Bidding: Tariff-based competitive bidding with a single-stage, two-envelope process conducted online.
Contract: Each successful bidder will enter into a Battery Energy Storage Purchase Agreement (BESPA) with MPPMCL.

Financial Support & Viability Gap Funding

The project is designed to be supported with Viability Gap Funding (VGF) from the central government. The eligible VGF cap is reportedly ₹1.8 million (~₹18 lakh) per MWh, amounting to an estimated ₹270 crore total support for the full 1,500 MWh project capacity.

Technical and Interconnection Requirements

The BESS must be designed for integration with the state transmission network operated by Madhya Pradesh Power Transmission Company Limited (MPPTCL).

Each unit must reliably deliver a two-hour minimum discharge duration at rated capacity, complying with grid-codes and performance standards.

The system should support two cycles per day to meet peak and non-peak demand requirements.

Eligibility & Bid Conditions

To qualify for the tender, developers must meet the following criteria:

Minimum Net Worth: ₹4.4 million (~₹44 lakh) per MW of quoted capacity.
Annual Turnover: At least ₹2.13 million (~₹21.3 lakh) per MW.
Internal Resource Capability: ₹426,800 (~₹4.27 lakh) per MW OR a lender approval letter for working capital of ₹534,600 per MW.

Refurbished or second-life battery cells are not permitted; only commercially proven and operational technology will be accepted.

Fees and Bank Guarantees

Processing Fee: ₹1.5 million (~₹15 lakh) per bidder.
Earnest Money Deposit (EMD): ₹220,000 (~₹2.2 lakh) per MW quoted.

Bidders will also be required to furnish a performance bank guarantee before BESPA signing.

Timeline

Bid Submission Deadline: February 23, 2026.
Bid Opening: Tentatively scheduled shortly after submission.

The tender represents a major push by Madhya Pradesh towards integrating grid-scale battery storage solutions that can:

Improve grid stability and peak load management.
Provide reliable back-up and on-demand dispatchable power.
Support higher integration of renewable energy into the state grid.
Offer long-term operational flexibility under the 12-year BESPA.

This BESS tender follows several big grid-scale storage initiatives across India, highlighting the expanding role of battery storage in enabling the country’s clean energy transition.