Tamil Nadu and Kerala have awarded large standalone Battery Energy Storage System (BESS) projects, and the tariff outcomes have surprised many market participants. At a time when the sector has been facing pressure from rising battery metal prices, currency fluctuations, and supply chain uncertainties, the latest bids indicate that tariffs have remained competitive rather than increasing. These tenders also signal the entry of new players into India’s growing BESS market.
In Kerala, NVVN awarded a 250 MW/500 MWh standalone BESS project with a requirement of 420 cycles annually for a period of 15 years. The tender was in October 2025, and bids were awarded around three months later. Shreyas Sortex Industries Private Limited emerged as the lowest bidder, quoting a tariff of ₹1.81 lakh per MW per month. OPG Power Generation Private Limited closely followed with a bid of ₹1.82 lakh per MW per month. Oriana Power Limited secured capacity at ₹2.16 lakh, while DB Power BESS Storage Limited won part of the project at ₹2.21 lakh. NTPC Green Energy Limited was awarded capacity at ₹2.22 lakh, and Power Grid Corporation of India Limited emerged as the highest successful bidder at ₹2.246 lakh per MW per month.
The Kerala tender is being widely discussed because of the sharp price discovery, with the lowest tariff settling at ₹1.81 lakh per MW per month for a long-term 15-year contract. This outcome came despite industry concerns that battery costs were rising significantly due to higher metal prices, changes in battery export policies, and foreign exchange volatility. The results suggest that developers are finding ways to manage costs and take a long-term view of the storage market. The entry of Shreyas Sortex Industries as the lowest bidder also highlights the widening pool of participants in the BESS sector.
In Tamil Nadu, the energy arm of Tamil Nadu Generation and Distribution Corporation, TNGECL, awarded a larger 375 MW / 1,500 MWh standalone BESS project. This tender was in November 2025, and the results were announced within two months. The project has a 1.5-cycle requirement over 15 years, making it the first BESS tender in India to specify such a condition. The lowest discovered tariff was ₹3.15 lakh per MW per month.
Eagle Construction Company won capacity at the benchmark tariff of ₹3.15 lakh per MW per month. OPG Power Generation Private Limited followed closely with a bid of ₹3.16 lakh. Onward Solar Power Private Limited secured capacity at ₹3.25 lakh, while FORCEOne SD Private Limited bid ₹3.27 lakh. Brics Renewable Energy Private Limited and Sri Srinivasa Constructions Private Limited won capacity at ₹3.28 lakh and ₹3.32 lakh per MW per month, respectively.
The Tamil Nadu tender is considered a milestone because of its higher cycle requirement and long contract duration, which increase technical and financial expectations from developers. Even so, the discovered tariffs remained stable, challenging assumptions that storage prices would rise sharply. Together, the Kerala and Tamil Nadu tenders reflect changing market dynamics, improved confidence in BESS deployment, and growing competition, even in a challenging cost environment.
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