Telangana Power Generation Corporation Limited (TGGENCO) has completed an auction for a 250 MW/500 MWh standalone Battery Energy Storage System (BESS) in Telangana. The auction resulted in a competitive tariff, setting a benchmark with a discovered rate of ₹2.403 per kWh. The tariffs in the auction ranged from ₹2.40 to ₹2.45 per kWh, reflecting strong developer interest and competitiveness in India’s renewable energy sector.
Three companies secured contracts for a total capacity of 225 MW. Pace Digitek won the largest share, securing 125 MW at ₹2.45153 per kWh. Bondada Engineering was awarded 50 MW at ₹2.403 per kWh, while Oriana Power secured 50 MW at ₹2.45152 per kWh. Their tariff bids led to the allocation of only 225 MW capacity out of the 250 MW available.
TGGENCO had the tender under a global competitive bidding process for the development of energy storage solutions under a Build, Own, and Operate (BOO) model. The project is backed by Central Financial Assistance under the Viability Gap Funding (VGF) scheme, providing financial support of ₹27 lakh per MWh or 30% of the capital cost, whichever is lower. The initiative aims to enhance energy storage capabilities in the state.
