MSEDCL Invites Bids for 2,000 MW/4,000 MWh BESS Projects

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has invited bids from Battery Energy Storage System Developers (BESSDs) for the development of 2,000 MW/4,000 MWh of Battery Energy Storage System (BESS) capacity across the state. The tender is aimed at strengthening Maharashtra’s grid infrastructure while enhancing the integration of renewable energy through large-scale energy storage deployment.

According to the tender, the proposed BESS capacity will comprise both co-located projects, including Inter-State and Intra-State configurations, as well as standalone projects connected to the State Transmission Utility (STU) network. The projects will be designed to provide a two-hour discharge duration with one charging and discharging cycle per day.

MSEDCL has invited technical and financial bids under a tariff-based competitive bidding process. Interested developers can submit their proposals until July 22, 2026. The tender document can be purchased for ₹29,500.

As per the tender terms, MSEDCL will be having the contractual right to use the battery storage systems for minimum 6,300 operational cycles during the contract period at no extra cost. The storage facilities would be installed at multiple locations across MSEDCL, Maharashtra State Electricity Transmission Company Limited (MSETCL) and Central Transmission Utility (CTU) substations to provide dispatchable energy storage capacity as per utility’s requirement.

The stored power will be charged and discharged in accordance with dispatch instructions issued by MSEDCL, enabling the utility to manage peak demand, improve grid flexibility, and facilitate greater penetration of renewable energy resources within the state’s power system.

The selected developers shall be responsible, within the scope of work, for establishing the BESS projects together with dedicated transmission infrastructure up to the interconnection or delivery point at their own cost. Also, all statutory approvals, permits and clearances required for development and connectivity of the project have to be obtained by the developers. This includes approvals from state government agencies, local authorities and other relevant regulatory bodies.

The tender specifies that out of the total bidding capacity of 2,000 MW/4,000 MWh, the maximum capacity that can be allocated for projects located at MSETCL substations will be limited to 1,000 MW/2,000 MWh.

The tender also provides for a Viability Gap Funding (VGF) support of up to ₹18 lakh per MWh to improve project viability and participation. VGF support will be provided through the Power System Development Fund (PSDF) that will reduce the capital cost for developers and support faster deployment of grid-scale energy storage systems in Maharashtra.
The MSEDCL BESS initiative marks another significant step in Maharashtra’s efforts to strengthen grid reliability, support renewable energy integration, and accelerate the adoption of utility-scale battery storage infrastructure in line with India’s broader clean energy transition goals.