MSEDCL Floats Tender for 1,000 MW/4,000 MWh BESS

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a Request for Selection (RfS) for the procurement of energy through Battery Energy Storage Systems (BESS) with a total capacity of 1,000 MW/4,000 MWh, based on one cycle per day. The tender also includes a 500 MW/2,000 MWh Green Shoe Option, taking the potential procurement under the tender to 1,500 MW/6,000 MWh if the additional option is exercised.

The RfS, issued under MSEDCL/BESS/Phase-3/MT/26-27/002, is dated September 24, 2026 and seeks the selection of BESS developers for the procurement of energy for a medium-term period of five years. The systems will be used by MSEDCL for “on demand” usage and will be developed under the Build-Own-Operate (BOO) model.

Key Tender Details

Procurer: Maharashtra State Electricity Distribution Company Limited (MSEDCL)
BESS capacity: 1,000 MW/4,000 MWh
Green Shoe Option: 500 MW/2,000 MWh
Potential total capacity: 1,500 MW/6,000 MWh
Duration: Medium term – 5 years
Cycle requirement: 1 cycle per day
Project model: Build-Own-Operate (BOO)
Tender type: E-Tender
Bidding system: Single-stage bidding with two envelopes
RfS date: September 24, 2026

Under the tender, MSEDCL will select Battery Energy Storage System Developers for supplying energy from BESS facilities. The selected projects are required to be established under the BOO model. The procurement will be carried out through tariff-based competitive bidding, with an e-reverse auction to be conducted for eligible bidders.

The RfS document specifies that the completion and contract period will be as detailed in the tender document. Bidders are required to submit their bids in accordance with the technical, commercial and other requirements specified by MSEDCL.

Financial Requirements for Bidders

The tender requires bidders to pay a non-refundable RfS document fee of ₹29,500, including GST. In addition, a document processing fee of ₹3 lakh plus 18% GST for the total project capacity quoted by each bidder is applicable.

The Earnest Money Deposit (EMD) has been fixed at ₹1 lakh per MW. The EMD can be submitted through an Electronic Bank Guarantee, Payment on Order Instrument (POI) or Insurance Surety Bond (ISB).

Security Requirements

RfS document fee: ₹29,500 including GST
Processing fee: ₹3 lakh + 18% GST for total quoted capacity
EMD: ₹1 lakh/MW
Performance security: ₹10 lakh/MW
Permitted alternatives: POI and ISB for applicable bank guarantee requirements

Selected bidders will also be required to submit a Performance Bank Guarantee (PBG) of ₹10 lakh per MW before signing the Battery Energy Storage Purchase Agreement (BESPA), in accordance with the terms of the RfS. The tender permits Payment on Order Instrument (POI) and Insurance Surety Bond (ISB) as alternatives to an electronic Performance Bank Guarantee.

MSEDCL has specified that the bidding will follow a single-stage, two-envelope system. The tender will be conducted through an e-tendering process, while the technical and commercial bid opening will take place according to the schedule provided in the Notice Inviting Tender on the ISN-ETS portal.

Bidding and E-Reverse Auction
Bid system: Single stage, two envelope
Submission mode: E-tender
Technical-commercial bid opening: As per NIT on ISN-ETS
e-Reverse Auction: For eligible bidders
e-RA schedule: To be communicated through the portal
Bid queries: To be submitted by September 28, 2026

The pre-bid meeting will be held according to the date and time specified on the ETS portal. Prospective bidders are required to submit their queries to MSEDCL through the designated email address before the prescribed deadline. According to the tender document, queries submitted after September 28, 2026 will not be considered.

MSEDCL has also instructed prospective bidders to regularly monitor the ISN-ETS portal and MSEDCL website for notices, amendments, clarifications and corrigenda related to the RfS. No separate notification will be issued individually or through print media for such updates.

Five-Year Energy Procurement

The tender is specifically structured for the medium-term procurement of energy from BESS facilities for five years. The 1,000 MW/4,000 MWh requirement represents a storage configuration based on one cycle per day, while the additional 500 MW/2,000 MWh Green Shoe Option provides for additional capacity under the same procurement framework.

The selected BESS developers will therefore be responsible for developing and operating the storage projects in accordance with the requirements and contractual conditions specified in the RfS and subsequent agreements.

MSEDCL has stated that bidders must submit their proposals strictly according to the terms and conditions of the RfS and are not permitted to stipulate deviations or exceptions. Bidders meeting the qualifying requirements can download the complete tender document, along with amendments and clarifications, through the designated e-tendering portal or the MSEDCL website.

Tender Contact

The RfS has been issued by the Commercial Section of MSEDCL, located at Prakashgad, Bandra (East), Mumbai. Mrs. Kavita Gharat, Chief Engineer (Commercial), has been designated as the contact for submission of responses to the RfS.

The tender also lists Kiran Nagaonkar, Superintending Engineer (RE), and Kailas Lavekar, Executive Engineer (RE), as contacts for assistance related to the tender process.

The RfS document covers the procurement of 1,000 MW/4,000 MWh of MSEDCL BESS capacity with a 500 MW/2,000 MWh Green Shoe Option, providing the framework for MSEDCL’s medium-term procurement of stored energy through tariff-based competitive bidding.