Power Grid Corporation of India has invited online bids to develop a four-hour battery energy storage system in Telangana. The deadline is today, 19 October 2026, and the project is meant to help the grid absorb more solar and wind power.
India is adding renewable energy faster than its grid can comfortably handle, and batteries are becoming the tool of choice to close that gap. The latest example comes from Telangana, where Power Grid Corporation of India Ltd (POWERGRID) has invited online bids for a 187.5 MW/750 MWh battery energy storage system (BESS).
The company says the project is meant to strengthen grid stability and support the integration of renewable energy into the network. Bids are due by 11:00 AM today, and the first envelope is scheduled to be opened at 11:30 AM.
The project at a glance
| Detail | Information |
|---|---|
| Developer inviting bids | Power Grid Corporation of India Ltd (POWERGRID) |
| Capacity | 187.5 MW power / 750 MWh energy |
| Duration | 4 hours at full output |
| Location | Telangana |
| Package name | TS-BESS-01 |
| Tender reference | CC/T/W-BESS/DOM/A02/26/14098 |
| Portal and RFX number | POWERGRID PRANIT portal, RFX 5002005732 |
| Participation fee | Rs 25,000 |
| Tender value and EMD | Listed as zero on the portal |
| Bid deadline | 19 October 2026, 11:00 AM |
| Bid opening | 19 October 2026, 11:30 AM |
What “187.5 MW/750 MWh” actually means?
The two numbers describe different things. The 187.5 MW figure is the system’s power rating, meaning how much electricity it can deliver at any moment. The 750 MWh figure is its energy capacity, meaning how much it can store in total.
Divide one by the other and you get four hours. That is how long the system can run at full output before it is empty. Four-hour batteries are popular with grid planners because they can cover the stretch of the evening when demand is high and solar output has faded.
How the system helps the grid?
A battery storage system works as a buffer. It takes in electricity when supply is plentiful, then releases it when demand rises or when renewable generation drops. The project is designed to do exactly that, which supports grid balancing and the wider integration of solar and wind power.
For a state grid, this matters in practical terms. Solar output peaks in the middle of the day, while many households and businesses use the most power in the evening. Wind can be strong or weak with little warning. Storage smooths over those mismatches without needing a fossil-fuel plant on standby.
Where exactly is it going?
The summary of the tender says only “Telangana.” Other trade reports fill in the location. POWERGRID’s notice places the system at the Maheswaram 400/220 kV substation in Telangana. It is one of two similar 187.5 MW/750 MWh packages, the other being at the Choutuppal substation. energetica-indiamercomindia
A contract tied to a larger state project
The tender has an unusual structure that readers should understand. It is not a straightforward order from a state utility to a contractor.
POWERGRID is running a domestic competitive bidding process to pre-select a contractor, because it intends to take part in Telangana Power Generation Corporation Ltd’s (TGGENCO) selection process for a battery storage developer. The chosen bidder will be linked to POWERGRID’s tariff bid, and will receive the execution contract only if POWERGRID wins and is issued a letter of award by TGGENCO. pv-magazine-indiapv-magazine-india
In plain terms, POWERGRID is lining up its construction partner before it knows whether it will win the larger contest. The tender documents, as reported, are clear that the package award depends on that outcome.
What the winning contractor will have to do?
The selected contractor will handle design, supply, erection, testing and commissioning, as well as operation and maintenance. POWERGRID has set a 15-month period for commissioning and takeover, followed by 15 years of comprehensive maintenance. The tender follows a single-stage, two-envelope process, with the techno-commercial envelope opening first. energetica-indiaenergetica-india
That 15-year maintenance period is worth noting. Batteries lose capacity over time, and a long maintenance commitment means the winning firm will be tied to the project well beyond construction.
The wider Telangana storage plan
This package is one piece of a bigger programme. TGGENCO has floated a tariff-based competitive bidding tender for 375 MW/1,500 MWh of standalone BESS, split into two projects of equal size at the Maheswaram and Choutuppal substations. energetica-india
Under the state’s tender guidelines, the projects get land on a right-to-use basis at Rs 1 per acre per year, and viability gap funding (VGF) of Rs 1.8 million per MWh of awarded capacity. The VGF is released in stages: 20 per cent at financial closure, 50 per cent at commercial operation, and the last 30 per cent a year after commercial operation, subject to certification. renewablewatchrenewablewatch
Those terms are why developers pay attention. Cheap land and capital support reduce the cost of building a battery plant, which in turn lowers the tariff a bidder needs to quote.
Key dates
| Milestone | Date and time |
|---|---|
| Document sale and soft copy bid submission opens | 12 October 2026, 7:50 PM |
| Document sale closes | 17 October 2026, 11:55 PM |
| Bid submission deadline | 19 October 2026, 11:00 AM |
| Bid opening | 19 October 2026, 11:30 AM |
Who can bid?
The tender is classified as a power and energy project works contract. It is open to eligible firms registered and incorporated in India, subject to the stated qualification requirements and procurement rules. energetica-india
Bidders are expected to read the official documents for eligibility conditions, technical specifications and commercial requirements before submitting an offer. The tender is being managed by Satyam Gupta, Engineer (CS), at POWERGRID’s corporate office in Gurugram, Haryana.
The participation fee is Rs 25,000. The tender value and earnest money deposit (EMD) are shown as zero on the portal, but bidders should confirm the exact terms in the full documents.
What to watch next?
Three things will tell us how this plays out.
- How many firms bid. Interest from battery system integrators and EPC contractors will show how competitive the market for grid-scale storage has become.
- The outcome of TGGENCO’s selection. Because the contract depends on POWERGRID winning that process, this tender is only a first step.
- Execution against the 15-month schedule. Storage projects can slip on equipment supply, grid connection approvals and testing. Meeting the deadline will be the real measure of progress.
The broader direction is clear. As more solar and wind joins the grid, flexible capacity of this kind is moving from optional extra to basic infrastructure.
FAQ
What is POWERGRID’s Telangana battery storage project?
- It is a 187.5 MW/750 MWh battery energy storage system, designated Package TS-BESS-01, for which POWERGRID has invited online bids.
Where will the battery system be built?
- In Telangana. Trade reports place it at the Maheswaram 400/220 kV substation.
How long can the system supply power?
- Four hours at full output, because 750 MWh divided by 187.5 MW equals four.
What is the bid deadline?
- 11:00 AM on 19 October 2026. Bids are scheduled to be opened at 11:30 AM the same day.
How much does it cost to take part?
- The participation fee is Rs 25,000. The tender value and EMD are listed as zero on the portal.
Is the contract guaranteed to be awarded?
- No. As reported, the package award goes ahead only if POWERGRID is declared the successful bidder in TGGENCO’s selection process and receives a letter of award.
