MPPMCL Invites Bids for 750 MW / 1,500 MWh BESS Projects in Madhya Pradesh

Madhya Pradesh Power Management Company Limited (MPPMCL) has issued a tender to set up 750 MW / 1,500 MWh of standalone Battery Energy Storage Systems (BESS) across the state.

This tender marks one of the largest grid-scale storage procurement initiatives undertaken by a state utility in India to date.

The projects will be developed under the Build-Own-Operate (BOO) model through a tariff-based competitive bidding process, with viability gap funding (VGF) support from the central government. 

According to the tender document, the total capacity will be deployed through four storage units - two units of 250 MW / 500 MWh each and two units of 125 MW / 250 MWh each - providing two full charge-discharge cycles per day. With battery prices moving up in the new year, the bids for these tenders should be a good pointer to how the market reacts to those price increases. Suffice to saym, any further drop in previous bids made would surprise pretty much everyone.  

Details and Timeline

MPPMCL issued the Notice Inviting Tender (NIT) on January 27, 2026. The bid documents are available for download from the ISN-ETS e-tendering portal. 

The last date for submission of pre-bid queries is February 6, 2026, with the pre-bid meeting scheduled on the same day at MPPMCL’s regional office in Bhopal. Online bid submissions will close on February 23, 2026, followed by hardcopy submission and techno-commercial bid opening on February 25, 2026.

Bidders will be required to pay a non-refundable bid document fee of ₹29,500, a bid processing fee of ₹15 lakh plus GST, and an earnest money deposit of ₹2.2 lakh per megawatt.

Project Structure and Grid Integration

The battery storage projects will be connected to identified substations of the Madhya Pradesh state transmission network. While interconnection points have been earmarked, developers will be responsible for identifying, acquiring, and developing land near the substations for project execution. No land will be provided by MPPMCL for the projects.

The storage systems will operate on an “on-demand” basis to support state distribution companies during peak and off-peak periods. MPPMCL will provide charging power to the BESS at no additional cost, within the limits specified under the tender and the Battery Energy Storage Purchase Agreement (BESPA) to be signed with selected developers.

Viability Gap Funding Support

The projects will be eligible for viability gap funding of up to ₹18 lakh per MWh. This translates to a total VGF outlay of ₹270 crore for the full 1,500 MWh capacity. 

The funding will be released in three tranches - 20 percent upon financial closure, 50 percent at commercial operation, and the remaining 30 percent after completion of one year of operations.

MPPMCL stated that the procurement is aligned with the Ministry of Power’s guidelines for battery energy storage systems and the VGF scheme notified in June 2025.