Power Grid Corporation of India Limited (POWERGRID) has invited bids to pre-select an execution partner for a 187.5 MW/750 MWh standalone Battery Energy Storage System (BESS) at the 400/220 kV Maheswaram substation of the Transmission Corporation of Telangana (TGTRANSCO). Issued on 12 October 2026 under Package TS-BESS-01, the tender will support POWERGRID’s participation in the selection of a Battery Energy Storage System Developer (BESSD) being conducted by Telangana Power Generation Corporation Limited (TGGENCO).

The facility is rated to deliver 187.5 MW over four hours. It forms part of Telangana’s plan to set up 1,500 MWh (375 MW × 4 hours) of standalone storage on vacant land at two TGTRANSCO substations under tariff-based competitive bidding.

Tender at a Glance

How the Pre-Bid Tie-Up Works

TGGENCO has issued a Request for Selection (RfS) to choose the developer for the Maheswaram project through tariff-based global competitive bidding, with Viability Gap Funding (VGF) support from the Power System Development Fund (PSDF). Instead of bidding on its own, POWERGRID is first fixing an execution partner whose prices will underpin its tariff offer.

The lowest evaluated bidder that meets the specified capacity, capability and eligibility requirements will be pre-selected, and a memorandum of understanding (MoU) will be signed with that firm before POWERGRID submits its tariff bid. The execution contract will be awarded only if POWERGRID is declared successful and receives a Letter of Award (LoA) from TGGENCO. POWERGRID, or a company it nominates, will then develop the project as the BESSD on a Build, Own, Operate (BOO) basis.

The pre-selected bidder may not take part in TGGENCO’s RfS for the same project, either independently or indirectly, so its pricing remains exclusive to POWERGRID’s bid.

Scope of Work

The contractor will be responsible for design, supply, erection, testing, commissioning, and operation and maintenance of the complete facility. The plant must be commissioned and taken over within 15 months, followed by comprehensive maintenance for 15 years in accordance with the technical specifications.

Earlier Round for the Same Programme

This is not POWERGRID’s first tender for the site. In January 2026, it invited bids under Package Telangana-BESS 01 (Specification No. CC/T/W-MISC/DOM/A02/26/00485) for a 187.5 MW/750 MWh system at Maheswaram, linked to the same 1,500 MWh programme across two TGTRANSCO substations. That package was also run through domestic competitive bidding, under a single-stage, two-envelope e-procurement system.

Bids for that package were originally due on 21 January 2026, and the deadline was extended repeatedly. By the fifth extension, issued on 4 February, it had moved to 6 February 2026. The new tender carries a fresh package name and reference, with a one-week bidding window.

Central Funding Support

Telangana’s storage programme draws on central VGF support. The Union Cabinet approved the VGF scheme for BESS on 6 September 2023, targeting 4,000 MWh by 2030-31 with support of up to 40 percent of capital cost and an initial outlay of about ₹9,400 crore, including ₹3,760 crore of budgetary support. The scheme also requires at least 85 percent of project capacity to be made available to distribution companies, with developers selected through competitive bidding. As battery prices fell, the Ministry of Power raised the capacity covered within the same budget to about 13.2 GWh.

In June 2025, the Ministry added a second scheme for 30 GWh, funded with ₹5,400 crore from the PSDF at ₹18 lakh per MWh. Of this, 25 GWh is allocated to 15 States and 5 GWh to NTPC, with proposals routed through the National Load Despatch Centre (NLDC), the nodal agency for PSDF. Telangana’s share is 1,500 MWh, matching the combined capacity planned at the two TGTRANSCO substations. At the notified rate, the 750 MWh Maheswaram project works out to about ₹135 crore in VGF support.

Why It Matters

For POWERGRID, the tender marks a move beyond transmission into owning and operating grid-scale storage. Under the BOO model, the utility would carry long-term responsibility for the asset rather than construction alone, and pre-selecting an EPC partner lets it fix costs and execution capability before tariff discovery.

For Telangana, a four-hour system at a 400/220 kV node adds flexible capacity that can store surplus energy and release it when demand rises. Nationally, the National Electricity Plan 2023 estimates that India will need 236 GWh of BESS by 2031-32, which makes the timely award and commissioning of VGF-backed projects important.

What Comes Next

Document sale closes on 17 October, and bids are due and will be opened on 19 October 2026. After pre-selection and signing of the MoU, POWERGRID will submit its tariff bid under TGGENCO’s RfS. Whether the project proceeds under POWERGRID’s ownership depends on the outcome of that auction. If it succeeds, the 15-month execution period and the 15-year maintenance obligation will follow the award.

Official Sources

1. POWERGRID e-Tender Portal – Package TS-BESS-01, Spec. No. CC/T/W-BESS/DOM/A02/26/14098 (RFX 5002005732): https://etender.powergrid.in
2. POWERGRID – Package Telangana-BESS 01, Bid Deadline Extension Letter I (21 January 2026): https://apps.powergrid.in/pgciltenders/Files/0fc8da7f-d41a-467f-b021-00dbdf0d5285/9b36ee93-699f-4908-8e3e-a6ab34c8771d/OBD_EXTN_LETTER-I.docx
3. POWERGRID – Package Telangana-BESS 01, Bid Deadline Extension Letter V (4 February 2026): https://apps.powergrid.in/pgciltenders/Files/0fc8da7f-d41a-467f-b021-00dbdf0d5285/bb34162c-5ccb-4bb4-9fa6-2018f0d11f87/OBD_EXTN_LETTER-V.docx
4. Press Information Bureau – Cabinet approves VGF Scheme for development of BESS (6 September 2023): https://pib.gov.in/PressReleasePage.aspx?PRID=1955113
5. Press Information Bureau, Ministry of Power – Per kWh Cost of Battery Energy Storage System Falls Steeply (15 December 2025): https://www.pib.gov.in/PressReleasePage.aspx?PRID=2204118
6. Central Electricity Authority – Battery Energy Storage System (BESS): VGF scheme and State-wise PSDF allocation: https://intranet.cea.gov.in/bess/about
7. MNRE – Policy & Regulatory Updates, June 2025 (MoP VGF scheme for 30 GWh BESS, 9 June 2025): https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2025/07/202507111961820654.pdf