The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a request for selection (RfS) for the selection of battery energy storage system (BESS) developers to set up 2,000 MW/4,000 MWh (1 cycle) of BESS capacity under tariff-based competitive bidding. The projects will be developed on a build-own-operate basis, and MSEDCL will enter into a battery energy storage purchase agreement (BESPA) with the successful bidders. The selected developers will be eligible for viability gap funding of up to Rs 1.8 million per MWh under the Ministry of Power’s BESS VGF scheme.

According to the tender guidelines, the scope of work includes setting up the BESS across multiple MSEDCL, Maharashtra State Electricity Transmission Company Limited (MSETCL) and central transmission utility (CTU) substations. The selected developers will provide on-demand energy storage capacity to MSEDCL, which will have the contractual right to utilise the systems for at least 6,300 cycles during the contract period without any additional cost. The total capacity of 2,000 MW/4,000 MWh has been divided equally into Part A and Part B, each comprising 1,000 MW/2,000 MWh. Part A covers setting up  BESS projects at MSEDCL/MSETCL substations, while Part B comprises setting up 1,000 MW/2,000 MWh capacity as co-located (interstate/intrastate) and standalone state transmission utility-connected projects. Charging energy will be provided by MSEDCL, while power will be dispatched to its network in accordance with dispatch instructions issued under the BESPA.

Furthermore, bidders are required to pay a non-refundable document fee of Rs 29,500 and submit an earnest money deposit of Rs 0.56 million per MW in the form of an electronic bank guarantee. Successful bidders will also be required to furnish a performance bank guarantee of Rs 1.4 million per MW prior to signing BESPA. The bid submission deadline is July 22, 2026.