Madhya Pradesh Power Management Company (MPPMCL) has invited bids to set up 750 MW/1.5 GWh (two units of 250 MW/500 MWh and two units of 125 MW/250 MWh) of standalone battery energy storage systems (BESS) under a build, own, and operate model.

The projects will be developed with support from viability gap funding (VGF). The VGF amount eligible for the developer would be limited to ₹1.8 million (~$19,639)/MWh.

The last date to submit bids is February 23, 2026. Bids will be opened on February 25.

Bidders must pay a processing fee of ₹1.5 million and an earnest money deposit of ₹220,000 (~$2,401)/MW.

Successful bidders must furnish a performance bank guarantee of ₹1.1 million (~$12,011)/MW.

The project should be designed for interconnection with the state transmission utility network in accordance with the prevailing regulations.

The BESS should be designed to provide a minimum of two hours of discharge capacity at rated power with two cycles per day.

MPPMCL will enter into Battery Energy Storage Purchase Agreement (BESPA) with the successful bidders for each project.

The BESPA will be valid for 12 years from the date of full commissioning of the Project.

The, bidders’ net worth should be at least ₹4.4 million (~$48,007)/MW as of the last date of the previous financial year.

Bidders should have a minimum annual turnover of ₹2.13 million (~$23,240)/MW of the quoted capacity during the previous financial year.

Also, the internal resource generation capability, in the form of profit before depreciation, interest, and taxes, should be at least ₹426,800 (~$4,656)/MW of the quoted capacity, as on the last date of the previous financial year.

Alternatively, bidders should have an approval letter from lending institutions for a Line of Credit for a minimum of ₹534,600/MW of the quoted capacity, towards meeting the project’s working capital requirement.

MPPMCL has proposed promoting only technologies that are commercially established and operational to minimize technology risk and achieve timely project commissioning.

Further, the developer should ensure that refurbished battery cells are not used in the project and that the application software for the BESS Energy Management System is developed indigenously in India.

India’s cumulative installed energy storage capacity reached 490 MWh by the end of June 2025, according to Mercom India Research’s India’s Energy Storage Landscape 1H 2025 Report.

In September last year, MPPMCL invited bids to procure 500 MW of energy storage capacity from interstate transmission system (ISTS)- connected pumped storage projects.

Earlier, MPPMCL had invited tenders for the procurement of 500 MW of energy storage capacity with a six-hour discharge and a maximum of four hours of continuous discharge for 40 years from ISTS-connected pumped hydro storage projects through competitive bidding.