The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a request for selection to procure 2,000 MW/4,000 MWh standalone battery energy storage systems (BESS) across multiple locations in the state under a build-own-operate model. The projects will be connected near substations operated by MSEDCL or Maharashtra State Electricity Transmission Company Limited. The selected developers will receive viability gap funding from the central government at Rs 1.8 million per MWh, disbursed in three tranches: 20 per cent at financial closure, 50 per cent at commercial operation date (COD), and 30 per cent one year after COD.
According to the tender guidelines, the BESS must support two daily charge-discharge cycles with a discharge duration of two hours. MSEDCL will provide land for standalone projects on a right-of-use basis at a nominal lease of Rs 1 per plot annually, while co-located project developers must arrange their own land. The minimum bid size is 100 MW/200 MWh, and each project must be commissioned within 18 months from the effective battery energy storage purchase agreement (BESPA) date. A delay of up to nine months beyond the scheduled commissioning date is permitted, subject to liquidated damages. Delays exceeding this period will result in BESPA termination and encashment of the full performance bank guarantee. Co-located projects may integrate BESS with their current solar installations. The bidders must maintain an annual availability of at least 95 per cent, failing which liquidated damages amounting to twice the applicable capacity charges for the shortfall will be levied. The bidders must submit a money deposit of Rs 420,000. The deadline for bid submission is September 15, 2025.
According to the eligibility criteria, the bidders must be standalone BESS developers or renewable energy generators with an existing intra-state power purchase agreement with MSEDCL. The bidders must also have a net worth of Rs 7.4 million per MW of quoted capacity as of the end of the previous financial year or at least seven days before the bid submission deadline. Securities and Exchange Board of India-regulated alternative investment funds can meet this requirement by demonstrating cumulative assets under management equivalent to Rs 7.4 million per MW.
