Executive Summary
The Solar Energy Corporation of India (SECI) has formalized the conclusion of its December 2025 tender for the development of 125 MW / 500 MWh of standalone Battery Energy Storage Systems (BESS) in Odisha. GRIDCO Limited, acting as the state off-taker, will utilize the capacity to provide on-demand energy storage support and enhance grid flexibility. Following a competitive bidding process concluded in early 2026, the auction was dominated by Coal India Limited and Onward Solar Power. The projects are supported by Viability Gap Funding (VGF) to ensure tariff competitiveness, reflecting the broader market trend of declining storage costs and the increasing necessity of ESS for renewable energy integration.
Detailed Auction Results and Capacity Allocation
The auction successfully allocated the full 125 MW capacity across three project clusters. The bidding outcomes revealed a tight margin between the public sector major and private participation, with discovered tariffs as follows:
- Coal India Limited (Cluster I): Secured 40 MW / 160 MWh of capacity, consisting of Project-1 (Padampur) and Project-2 (New Bolangir). Each unit is rated at 20 MW / 80 MWh. The awarded tariff was ₹3.04 Lakh/MW/Month.
- Coal India Limited (Cluster II): Secured an additional 40 MW / 160 MWh of capacity, comprising Project-3 (Bhatli) and Project-4 (Basta). Both projects are rated at 20 MW / 80 MWh. The awarded tariff was ₹3.05 Lakh/MW/Month.
- Onward Solar Power (Cluster III): Awarded the remaining 45 MW / 180 MWh of capacity at a tariff of ₹3.75 Lakh/MW/Month. This allocation is distinguished by a capacity variance: Project-5 at the Narendrapur substation is a 25 MW / 100 MWh system, while Project-6 at Tentuli Khunti is a standard 20 MW / 80 MWh unit.
Project Locations and Grid Integration
The projects will be installed at six specific Grid Substations (GSS) across Odisha: Padampur, New Bolangir, Bhatli, Basta, Narendrapur, and Tentuli Khunti. To ensure high system reliability and n-1 contingency, the technical framework mandates the following:
- Connectivity and Infrastructure: Developers must construct two 33 kV Bays for each project. Following commissioning, these bays will be handed over to the State Transmission Utility (OPTCL) for long-term maintenance.
- Technical Protocols: Grid integration requires strict adherence to the IEC 104 communication protocol. Furthermore, the SCADA/SLDC real-time data refresh interval must be maintained at a minimum of 2 seconds.
- Operational Mandates: The BESS must be available for a minimum of one and a maximum of two operational cycles per day, with total utilization capped at 420 complete charge-discharge cycles per contract year.
- Auxiliary Power: Developers are responsible for separate metering for auxiliary loads. Consumption will be billed under the HT category of the respective DISCOM’s Retail Supply Tariff (RST) order.
Financial and Regulatory Framework
The tender is structured to mitigate capital risks through a robust fiscal mechanism while ensuring domestic industrial alignment:
- Viability Gap Funding (VGF): Supported through the Power System Development Fund (PSDF), VGF disbursement is governed by Ministry of Power guidelines dated 09.06.2025. Per Amendment-01, the VGF will be disbursed in two parts, contingent upon the developer submitting a Bank Guarantee (BG) or Insurance Surety Bond (ISB) to GRIDCO. No BG/ISB is required for the final tranche of VGF released after one year of operation.
- Land Acquisition: Project land is provided on a Right-to-Use basis at a symbolic rent of INR 1 per project for the entire tenure. However, developers remain liable for statutory charges, including land rent, cess, and other applicable fees.
- Domestic Content Mandate: In compliance with “Make in India” Order no. 48-15/21/2025 – NRE dated 24.12.2025, developers must ensure a minimum local content of 20% of the total project cost. Compliance must be verified by a statutory or cost auditor.
- Safety and Facilitation: All projects must comply with the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023. Additionally, a facilitation charge of ₹1,00,000 is payable to GRIDCO as the State Nodal Agency under the Odisha Renewable Energy Policy 2022 (OREP-2022).
Standard Project Milestones
The Battery Energy Storage Purchase Agreement (BESPA) dictates the critical development timelines for the 15-year contract term:
- Financial Closure: Must be achieved within 6 months of the Effective Date of the BESPA.
- Commissioning Protocol: Developers are required to provide a preliminary commissioning notice 60 days in advance, followed by a final advance notice 30 days prior to the proposed commissioning date.
- Contract Lifecycle: The 15-year tenure of the BESPA commences from the Scheduled Commissioning Date (SCD) or the date of full commissioning. Any extensions beyond this period will require mutual agreement between the developer and GRIDCO.
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