The MP Power Management Company (MPPMC) has invited bids to develop 625 MW / 1,250 MWh of standalone Battery Energy Storage Systems (BESS) in Madhya Pradesh under the Build-Own-Operate (BOO) model. The tender aims to strengthen the state’s electricity network by enhancing grid flexibility, supporting renewable energy integration, and ensuring a reliable power supply during peak demand periods.
The proposed project comprises three standalone BESS units, including two projects of 250 MW/500 MWh each and one project of 125 MW/250 MWh. These battery storage facilities will be connected to the Birsinghpur (Pali), Bina, and Sendhwa substations in Madhya Pradesh. Each system has been designed to provide two hours of energy storage and will operate on an on-demand charging and discharging basis to support the state’s power distribution network.
The selected Battery Energy Storage System Developers (BESSDs) will be responsible for financing, designing, constructing, owning, operating, and maintaining the projects throughout the contract period. The initiative will be implemented through a competitive bidding process, encouraging private sector participation while expanding the state’s energy storage infrastructure.
The tender has been issued under the Government of India’s Viability Gap Funding (VGF) programme, with eligible projects receiving financial support of up to ₹18 lakh per MWh in accordance with the scheme guidelines. The successful developers will enter into long-term agreements with MPPMCL to make the battery storage capacity available for grid operations, helping improve power reliability and renewable energy utilisation.
According to the bidding schedule, the tender documents became available in early July, while the last date for bid submission is July 30, 2026. Techno-commercial bids are scheduled to be opened on August 4, 2026, following the completion of the pre-bid process. Interested developers are required to meet the technical and financial eligibility criteria specified in the tender documents.
The latest tender highlights Madhya Pradesh’s continued focus on deploying large-scale battery energy storage projects to support India’s clean energy transition. As renewable energy capacity continues to grow, utility-scale BESS installations are expected to play a vital role in improving grid stability, managing peak demand, and ensuring a more resilient and sustainable electricity system across the state.
