The Solar Energy Corporation of India Limited (SECI) has issued a Request for Selection (RfS) for setting up 4 GW / 16 GWh of standalone Battery Energy Storage Systems (BESS) across Rajasthan and Gujarat. The projects will be developed under the Build-Own-Operate (BOO) model to strengthen India’s energy storage infrastructure, improve grid flexibility and support the integration of renewable energy into the power system.
The tender has been divided into two packages with a combined capacity of 4 GW / 16 GWh. Package I covers 2.5 GW / 10 GWh of battery energy storage capacity in Rajasthan, while Package II comprises 1.5 GW / 6 GWh in Gujarat. Interested bidders can submit proposals for either one package or both packages, providing flexibility for developers seeking to participate in the large-scale storage procurement.
The initiative is designed to provide on-demand energy storage to meet peak electricity demand and improve the management of power supply. Battery storage systems can store electricity when generation is available and discharge it when demand rises, helping balance variations in renewable energy generation. The projects are also expected to reduce renewable energy curtailment and support more efficient utilisation of solar and wind power.
To improve project viability and encourage participation from developers, the tender provides Viability Gap Funding (VGF) of ₹15 lakh per MWh. For the total contracted storage capacity of 16 GWh, the proposed financial support amounts to ₹2,400 crore. The funding is intended to help reduce the initial investment burden associated with developing large-scale battery storage infrastructure.
Selected developers will enter into a 20-year Power Purchase Agreement (PPA) with SECI. The tender also establishes a renewable energy requirement for charging the storage systems, stipulating that at least 51% of the charging power must originate from renewable energy sources. This requirement is intended to strengthen the link between battery storage deployment and India’s clean energy transition.
SECI issued the RfS document on October 28, 2026. The pre-bid meeting and submission deadlines will be as specified in the Notice Inviting Tender (NIT) published on the ISN-ETS portal and the SECI website.
The tender specifies an Earnest Money Deposit (EMD) of ₹7,18,400 per MW for each package. Bidders can provide the EMD through a Bank Guarantee, Payment on Order Instrument (POI) or Insurance Surety Bond. A Performance Bank Guarantee (PBG) of ₹17,96,000 per MW must also be submitted before signing the PPA.
The 4 GW / 16 GWh procurement represents a significant step towards expanding India’s standalone battery storage capacity. By combining long-term power purchase agreements with viability gap funding, SECI aims to support investment in energy storage and improve the reliability and flexibility of the country’s electricity grid as renewable energy capacity continues to grow.
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