MERC approves MSEDCL's competitive bidding process and RfS for 2000 MW/4000 MWh (1-cycle) standalone BESS procurement on long-term basis
Petition of Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) seeking approval for procurement of storage capacity from 2000 MW/ 4000 MWh standalone Battery Energy Storage System (BESS) through Competitive Bidding and approval of the Request for Selection (RfS) document thereof. And Interlocutory Application of MSEDCL for seeking urgent Hearing in Case No. 157 of 2025. And Application seeking permission to place on record additional documents in the present Petition.
MSEDCL sought approval to procure 2000 MW/4000 MWh standalone BESS via Section 63 competitive bidding and sought RfS approval, citing rising RPO Energy Storage Obligation (1.5% to 4% by FY2029-30), large daytime solar surplus (~76,440 MU over MYT period FY26-30) that fetches near-zero to Rs.2/kWh in RTM during solar hours vs Rs.4-8/kWh off-peak, and need for dispatchable capacity to manage intermittent RE, peak demand and grid flexibility per its Resource Adequacy Study.
- Petition in Case No. 157 of 2025 allowed; IA No. 134 & 135 of 2025 disposed of
- Commission accords approval for MSEDCL to initiate competitive bidding for 2000 MW/4000 MWh (1-cycle) standalone BESS on long-term basis under Section 63
- Draft Request for Selection (RfS) document, including final addenda (1-8), approved as proposed
- Commission relied on ST-DRAP/MT-DRAP data showing total planned BESS capacity of 2750 MW by FY2030-31; present 2000 MW procurement held to be well within planned quantum
- Noted absence of MoP reference bid document for BESS; Commission independently evaluated RfS and found it consistent with MoP Guidelines dated 10 March 2022 (and amendments)
- Confirmed BESS charging will use RE (mainly solar) power, qualifying towards MSEDCL's RPO/Energy Storage Obligation compliance
- MSEDCL to proceed with e-reverse auction based bidding process for 2000 MW/4000 MWh BESS as per approved RfS
- Selected developers to build, own and operate (BOO) BESS near MSEDCL/MSETCL substations, with land identification by MSEDCL
- Projects to be connected at 33 kV/EHV level to MSEDCL/MSETCL network
- Minimum system availability of 95% annually and round trip efficiency of 85% monthly to be maintained by developers
- Commissioning required within 18 months from BESPA effective date
- MSEDCL to arrange charging power (RE-linked) and issue day-ahead dispatch instructions via SLDC/MSEDCL for on-demand utilization
- • Large-scale BESS procurement signals growing grid flexibility infrastructure in Maharashtra, potentially easing evening/peak-hour power costs and improving reliability for C&I loads
- • BESS developers get a large (2000 MW/4000 MWh) long-term revenue opportunity via Section 63 bidding, VGF support (Rs.18 lakh/MWh) and BOO model — attractive for storage investors/developers
- • RE (solar) generators co-located with BESS gain flexibility as DC-coupling mandate withdrawn (AC-coupled BESS now permitted), easing hybridization for existing solar PPA holders
- • Increased BESS-backed RE integration may improve DAM/RTM price realization for solar surplus, indirectly benefiting open-access RE consumers facing curtailment or low RTM prices during solar hours
This is a significant scale-up (2000 MW/4000 MWh) following MSEDCL's earlier 750 MW pilot BESS tender, confirming Maharashtra's aggressive storage buildout trajectory (2750 MW planned by FY2030-31) to meet ESO targets and monetize solar surplus. For developers, the VGF of Rs.18 lakh/MWh plus BOO structure and 15-year contract tenure (per addenda) make this bankable; e-reverse auction competition may compress tariffs below the earlier discovered Rs.2,19,001/MW/month benchmark. C&I and RE developers should track bid timelines closely given the RfS has already seen eight addenda with shifting deadlines, and monitor how AC-coupled BESS flexibility opens hybridization options for existing solar assets.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.