Bondada, Telangana GENCO Ink ₹204.2 Cr BESS Project PPA

Bondada Engineering has secured a letter of award from Telangana Power Generation Corporation Limited (TGGENCO) for setting up a battery

27 May 2025 16:20 IST

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Telangana-based Bondada Engineering has secured a letter of award from Telangana Power Generation Corporation Limited (TGGENCO) for setting up a battery energy storage system (BESS) project.

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It said in a regulatory filing, “We are delighted to inform you that this is a first-of-its-kind order for our company in the BESS business line.” It added that the BESS project will be executed within 18 months from the power purchase agreement (PPA) signing. The order is valued at ₹204.20 crore, including GST, and spans 12 years."

About The Project

Bondada Engineering won the 50 MW capacity project from TGGENCO at a tariff of ₹2.40 lakh per MW per month. This was one of the first tenders released by TGGENCO for a standalone 500 MWh (250 MW x 2 hours) BESS project. The tender was issued under a viability gap funding (VGF) framework.

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TGGENCO awarded the remaining capacity to two other bidders. TrueRE-Oriana Power secured a 50 MW project at ₹2.45 lakh/MW/month, while Pace Digitek won 125 MW at ₹2.452 lakh/MW/month. The discovered tariffs ranged between ₹2.40 and ₹2.45 lakh per MW per month — around 9% higher than the lowest prices found in standalone BESS tenders with VGF.

Telangana Renewable Energy Policy

The projects are aligned with the Telangana Renewable Energy Policy 2025, released by the Telangana Renewable Energy Development Corporation Ltd (TGREDCO), which aims to scale up the state’s renewable and storage capacity to 20 GW by 2030.

The policy calls on the state to promote the development of battery energy storage systems (BESS) to improve grid utilisation, address renewable energy variability, and enhance energy resilience. According to the policy notification, tenders for these projects will be issued through tariff-based competitive bidding (TBCB), and government land may be offered on lease for the duration of the power purchase agreement (PPA) at 10% of the prevailing market value per annum. The lease rate will escalate by 5% every two years.

BESS Project Telangana Genco TGGENCO Bondada Engineering

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