MSEDCL Launches RfS for 600 MWh Battery Energy Storage System (BESS) in Maharashtra

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has released a Request for Selection (RfS) for the development of standalone Battery Energy Storage Systems (BESS) in Maharashtra. The pilot project aims to install a total capacity of 600 MWh (300 MW x 2 hours) under a tariff-based global competitive bidding framework​.

The objective of this tender is to bolster Maharashtra's energy infrastructure by securing reliable, on-demand energy storage solutions that enhance grid stability and flexibility. This initiative is aligned with MSEDCL’s broader strategy to leverage renewable energy, reduce dependence on traditional power generation methods, and improve the overall efficiency of the state’s power distribution system.

Scope of the Project

The tender seeks to identify and select BESS Developers (BESSD) who will be responsible for setting up and operating the energy storage facilities. These systems will be used by MSEDCL primarily for “on demand” power requirements, as determined by the State Load Dispatch Centre (SLDC). The projects will be developed under a Build-Own-Operate (BOO) model, with MSEDCL entering into a Battery Energy Storage Purchase Agreement (BESPA) with the successful bidders​.

The BESSD will handle all aspects of the project, including the construction, operation, and maintenance of the transmission system up to the interconnection point, entirely at their own cost. MSEDCL will provide the necessary power for charging the BESS and will bear transmission costs beyond the delivery point. However, the BESSD will be responsible for system losses and any other associated costs up to the point of interconnection.

Key Project Details

• Project Capacity: 600 MWh (300 MW x 2 hours)

• Minimum Bid Capacity: 100 MWh (50 MW x 2 hours)

• System Availability Requirement: 95% annually

• Round Trip Efficiency (RtE): 95%

• Capacity Degradation Allowance: 2.5% annually​ 

Land and Infrastructure: MSEDCL will facilitate the identification and allocation of land for these projects, with the land being leased to the BESSD on a right-of-use basis at a nominal annual charge of Re. 1 per plot​.

Financial Requirements: Prospective bidders are required to submit an Earnest Money Deposit (EMD) of Rs. 7.40 lakh per MW, along with a Performance Bank Guarantee of Rs. 18.50 lakh per MW per project. The tender documentation and processing fees stand at Rs. 29,500 plus GST and Rs. 15 lakh plus GST, respectively​.

Project Timelines: Bidders are expected to complete the BESS projects within 18 months from the date of signing the BESPA. The pre-bid meeting is scheduled for August 23, 2024, with the deadline for bid submission set for September 15, 2024,.

This initiative marks a significant step forward in Maharashtra’s pursuit of energy modernization and reinforces the state’s commitment to renewable energy integration.

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