India’s Grid Enters Energy Storage Era: Maharashtra Float 2000 MW / 4000 MWh BESS Tenders to Anchor Renewable Transition

Back-to-back mega tenders from MSEDCL and GUVNL signal a paradigm shift in India’s power sector as battery storage becomes central to grid flexibility, RE integration, and power cost optimization.

In a major boost to India’s clean energy and grid reliability roadmap, the states of Maharashtra and Gujarat have each issued Request for Selection (RfS) documents for 2000 MW / 4000 MWh Standalone Battery Energy Storage Systems (BESS), under tariff-based competitive bidding with long-term 12-year contracts. With a combined 4000 MW/8000 MWh in procurement, this is the largest coordinated energy storage procurement effort ever seen in India, and a clear signal of the nation’s intent to transition from fossil-dependent peaking solutions to battery-based dispatchable power.

These tenders follow closely on the heels of the GUVL, RVUNL new tender and NHPC, SJVN, NVVN's auction concluded earlier this year and align with the Ministry of Power’s National Framework for Energy Storage Systems (2023) which targets 51 GWh of BESS by 2030.

MSEDCL Phase-II BESS Tender: Anchoring Storage in India’s Largest Power Market

On 25th July 2025, the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) floated its second BESS tender (Phase-II) for 2000 MW / 4000 MWh of standalone storage systems. The project will be implemented under the Build-Own-Operate (BOO) model with developers required to sign a 12-year Battery Energy Storage Purchase Agreement (BESPA).

Key Features:

• Guaranteed Availability: ≥95%

• Round-Trip Efficiency (RtE): ≥85% (AC-AC); ≥90% (DC-coupled)

• Minimum Bid Size: 100 MW / 200 MWh

• Grid Access: Intrastate (≥33 kV); BESSD to build and fund evacuation infra

• Land Provision: Provided at ₹1/year for grid-connected projects

• Viability Gap Funding (VGF): Up to ₹18 lakh/MWh

• Commissioning Timeline: 18 months from BESPA effective date

Developers will be compensated via monthly capacity charges, while charging power will be provided by MSEDCL. Early commissioning is allowed with open market sale permitted until MSEDCL offtake begins.

Context & Industry Implications

India’s electricity demand surged by 8.3% YoY in FY 2024-25, driven by industrial recovery, heatwaves, and rising household consumption. States like Maharashtra and Gujarat, with over 60 GW of combined RE capacity, are grappling with grid congestion, diurnal demand variability, and the phase-out of diesel-based peaking power.

These tenders, are set to:

• Enable peak shaving and load shifting in high-demand zones

• Improve RE absorption and reduce curtailment losses

• Offset costly thermal ramping and DSM penalties

• Defer transmission upgrades via distributed flexibility

According to CEA’s latest estimate, India will need 47 GW/236 GWh of BESS by 2031–32, to complement a projected 500 GW of non-fossil capacity. Private players like JSW Energy, Greenko, Tata Power, ReNew, and Adani are scaling their storage portfolios, while global giants like Fluence, Tesla, CATL, and Sungrow are eyeing manufacturing and integration partnerships.

Next Steps and Developer Engagement

The deadline for bid submission is 15-09-2025 and pre bid is scheduled on 18-08-2025.

With these tenders, India’s storage market has crossed the inflection point, transforming from pilot-scale to a mainstream grid asset class. These projects will become templates for other high-load states like Tamil Nadu, Rajasthan, and Uttar Pradesh, set to launch similar procurements later this year.

By integrating storage as a core asset in the distribution architecture, Maharashtra is also scripting the blueprint for India's 21st-century power system—flexible, green, and future-ready.

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