The Maharashtra State Electricity Distribution Company (MSEDCL) has issued a tender to procure 2,000 MW/4,000 MWh of battery energy storage systems (BESS) under the build, own, and operate model.

The tender includes a viability gap funding provision of up to ₹1.8 million (~$21,690)/MWh, to be disbursed in three stages, 20% at financial closure, 50% on reaching the commercial operation date (COD), and 30% one year post-COD.

The storage systems will be deployed across multiple locations near MSEDCL or the Maharashtra State Electricity Transmission Company substations.

Bids must be submitted by September 15, 2025. Bids will be opened on September 16.

Bidders must furnish an earnest money deposit of ₹420,000 (~$5,060), a non-refundable document fee of ₹29,500 (~$355), and a processing fee of ₹1.5 million (~$21,320) plus 18% GST per quoted project.

Selected bidders must submit a performance bank guarantee of ₹1.05 million (~$12,650) before signing the battery energy storage purchase agreement (BESPA).

The BESS must be designed for two daily cycles with a discharge duration of two hours.

For standalone BESS, MSEDCL will provide land on a right-of-use basis at a nominal lease of ₹1 (~$0.012)/plot per year. For co-located projects, developers must arrange their own land.

The minimum bid size is 100 MW/200 MWh. The projects must be commissioned within 18 months from the effective date of the BESPA.

A maximum delay of nine months beyond the scheduled commissioning date is allowed, subject to liquidated damages. Any commissioning delays beyond this period will result in the BESPA’s termination and the encashment of the full performance bank guarantee.

Annual BESS availability falling below 95% will attract liquidated damages of twice the capacity charges applicable to the shortfall.

Bidders must be standalone BESS developers or renewable energy generators with an existing, valid intra-state power purchase agreement with MSEDCL. Co-located projects, such as renewable energy generators, can integrate battery storage with their existing solar projects.

Bidders must have a net worth of ₹7.4 million (~$89,190)/MW of the quoted capacity as of the last date of the previous financial year or at least seven days before the bid submission deadline.

Bidders who are registered as SEBI-regulated alternative investment funds can fulfil this requirement by showing cumulative assets under management of ₹7.4 million (~$89,190)/MW.

Last December, MSEDCL invited bids to procure 1,000 MW of round-the-clock power from April 1, 2025, to March 31, 2028.

In August 2024, MSEDCL issued a request for selection to set up pilot projects of 300 MW/ 600 MWh standalone battery energy storage systems in Maharashtra.