POWERGRID issues tender for 750 MWh battery storage in Telangana
POWERGRID has sought a contractor to design, supply, install, test, and commission a 187.5 MW/750 MWh four-hour battery energy storage system at the Maheswaram 400/220 kV substation in Telangana. The project will use tariff-based competitive bidding with viability gap funding from the power system development fund, and bids are due by October 19, 2026. The contractor must complete the work within 15 months and provide maintenance for 15 years, while POWERGRID will pre-select a lowest-evaluated bidder for TGGENCO's build-own-operate process.
POWERGRID is seeking a contractor for a four-hour battery storage facility in Telangana, sized at 187.5 MW and 750 MWh. It would be built at the Maheswaram 400/220 kV substation. The procurement uses tariff-based competition, with viability gap funding from the power system development fund.
Bids close October 19, 2026; interested bidders must submit required documents by October 17, 2026, to access the full bidding package. The chosen firm would finish construction within 15 months and then maintain the system for 15 years. POWERGRID plans to pre-select the lowest-evaluated bidder to join TGGENCO’s build-own-operate process; that bidder cannot separately enter the same TGGENCO selection.
The storage project could improve grid reliability in Telangana by absorbing variable renewable generation and releasing power during peak demand. Electricity consumers may benefit if storage reduces curtailment or supports steadier supply, though final costs depend on bidding and viability gap funding. Local workers and suppliers might see construction and maintenance opportunities over the 15-year contract. Because the tender is at an early stage, actual effects on tariffs, emissions, and grid operations remain uncertain.