Power Grid Corporation of India Ltd (PGCIL) has been formally awarded a battery energy storage system (BESS) project, won under the tariff-based competitive bidding (TBCB) route.
This marks the Central PSU’s entry in the BESS space in TBCB mode, a senior PGCIL official confirmed to tndindia.com
In a stock exchange filing, PGCIL said that it was issued the letter of award for a 150 MW/300 MWh BESS project in Andhra Pradesh, on December 29, 2025.
PGCIL was among the winners of a tariff-based bidding process carried out by Transmission Corporation of Andhra Pradesh Ltd (APTRANSCO) for setting up cumulative capacity of 2,000 MWh (1,000 MW x 2 hours) at selected substations of APTRANSCO.
The BESS project won by PGCIL will be set up at the 400/220kV Kalikiri substation in Chittoor district of Andhra Pradesh.
The project will be developed under the build, own & operate (BOO) model and will be eligible for viability gap funding (VGF), capped at Rs.18 lakh per MWh, availed from the Power Sector Development Fund (PSDF).
Other winners
Though the aforementioned BESS project was formally awarded on December 29, 2025, PGCIL, along with five other developers, was declared winner in November 2025.
According to a news report by Mercom, PGCIL was allocated 150 MW/300 MWh at a tariff of Rs.1,64,000 per MW per month.
Other winners of this tender included Bondada Engineering (225 MW, Hindupur substation); Ecoren Energy (275 MW, Talairicheruvu substation & 225 MW, Pampanuruthanda substation); Bhagwati Group (75 MW, Maradam substation); Legion Energy Products (25 MW, Simhachalam substation) and SVR Electro Projects (25 MW, Gajuwaka substation).
As per the tender terms, the upcoming BESS projects should connect to the state grid at 33kV level. Further, these BESS installations are expected to come up in 18 months and will supply “on-demand” power, governed by a 12-year BESS purchase agreement, it is learnt.
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