MSEDCL Awards 2 GW/4 GWh BESS Capacity at Rs 2.38–2.40 Lakh/MW/Month

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has finalised the successful bidders for its 2,000 MW/4,000 MWh (2 GW/4 GWh) Battery Energy Storage System (BESS) tender in Maharashtra. The auction discovered tariffs of ₹2.38 lakh/MW/month for Part A and ₹2.40 lakh/MW/month for Part B.

The tender divided the total 2,000 MW capacity into two segments: Part A covering 1,500 MW and Part B covering 500 MW. The awards were finalised through a competitive bidding process, with multiple developers securing capacity under the respective segments.

MSEDCL BESS Auction Results

Part A Awards 1,500 MW

Under Part A, MSEDCL awarded the entire 1,500 MW at a tariff of ₹2.38 lakh/MW/month. Oriana Power emerged with the largest allocation of 500 MW, followed by BSL Engineering Service with 300 MW and ArMee Infotech with 250 MW.

Stockwell Solar Services and GK Energy each secured 150 MW, while Claro Energy received 100 MW and Jailaxmi Sugar Products (Nitali) secured 50 MW.

GK Energy secured its 150 MW allocation from the 1,250 MW capacity quoted under the bucket-filling mechanism.

Part B Awards 500 MW

The remaining 500 MW under Part B was awarded at ₹2.40 lakh/MW/month. Oriana Power secured the largest share with 400 MW, while Aditya Green Energy received 40 MW.

Kotecha Sales, Rudraksha Power and Gurutura Green Energy each secured 20 MW.

Oriana Power was allocated 400 MW from the 500 MW it quoted under the bucket-filling mechanism.

Fresh Tender Follows APTEL Order

MSEDCL floated the fresh tender in June 2026 following an order by the Appellate Tribunal for Electricity (APTEL). The tribunal had set aside an earlier 2 GW/4 GWh BESS tender approved by the Maharashtra Electricity Regulatory Commission (MERC).

The earlier tender had increased the required utilisation from 5,475 cycles to 6,300 cycles, which APTEL determined represented a material change in the tender conditions. A fresh bidding process was subsequently directed.

The new tender retained a provision allowing MSEDCL to utilise the BESS for at least 6,300 cycles during the contract period without additional cost. The earlier auction had resulted in an L1 tariff of ₹1.65 lakh/MW/month.

VGF and Technical Requirements

The selected BESS projects will be eligible for Viability Gap Funding (VGF) of up to ₹18 lakh/MW. The Battery Energy Storage Purchase Agreements (BESPAs) will have a tenure of 15 years.

Developers will also be required to maintain at least 95% annual system availability and achieve a minimum 85% AC-to-AC round-trip efficiency (RTE) on a monthly basis.

The tender includes domestic-content requirements for the projects. The Energy Management System (EMS) application software used for the BESS installations must be developed indigenously. Developers are also required to maintain a minimum 20% local content of the total project cost, including the indigenous EMS software.

Oriana Power and GK Energy

Oriana Power has secured a combined 900 MW through the auction, comprising 500 MW under Part A and 400 MW under Part B. According to the company’s regulatory filing, the aggregate consideration under its two LoAs over the 15-year BESPA period is estimated at approximately ₹3,870 crore.

The company expects VGF support of approximately ₹324 crore, based on the current estimated project cost.

For GK Energy, the award marks its entry into the BESS segment. The company secured 150 MW/300 MWh at ₹2.38 lakh/MW/month. GK Energy expects the project to generate annual revenue of approximately ₹42.84 crore, excluding GST, for 15 years from the commencement of commercial operations.

The finalisation of the 2 GW/4 GWh auction adds a significant pipeline of utility-scale energy storage capacity in Maharashtra and provides multiple developers with long-term opportunities to deploy BESS infrastructure under 15-year agreements.

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