Maharashtra State Power Generation Company Limited (MAHAGENCO) has issued a notice inviting tender for the development of 500 MW/1,600 MWh of battery energy storage systems (BESS) at various locations in Maharashtra. According to the notice published on the company’s official tenders page, the projects will combine two-hour and four-hour storage and will be developed on a Build, Own and Operate (BOO) basis, with operation and maintenance by the selected developers for 15 years.

The tender is the state-owned generator’s latest step towards adding storage to a fleet that remains predominantly thermal. It follows a series of solar, solar-plus-storage and pumped storage initiatives launched during 2026 by MAHAGENCO and its renewable energy subsidiary.

Tender Scope and Structure

Under the BOO model, the selected developers will set up, own and operate the battery systems and will remain responsible for their operation and maintenance throughout the 15-year period. The capacity will be distributed across multiple sites in the state rather than concentrated at a single location.

Bidding is being conducted through MAHAGENCO’s e-procurement portal, where the complete bid documents, including the location-wise allocation of capacity, technical specifications, qualification requirements and security deposits, are available to registered vendors.

MAHAGENCO’s Changing Generation Mix

MAHAGENCO has the highest installed capacity among India’s state power generation utilities and is the second-largest state-owned generator after NTPC. According to the company’s tender documentation, its installed capacity stands at 13,880.55 MW, of which nearly 73.5% is thermal, while its commissioned solar capacity was 428.35 MWp as of early 2026.

The company has been widening its clean energy pipeline through 2026. MAHAGENCO has floated an international competitive bid for 240 MWac of grid-connected solar projects across Washim, Yavatmal and Chandrapur districts, and a 300 MWac Phase-II solar EPC package with land. Its renewable arm, Mahagenco Renewable Energy Limited (MahaGenco REL), issued a tender in May 2026 for consultancy and project management services for eight 25 MW solar plants paired with battery storage. In July 2026, it sought consultants to prepare detailed project reports for two pumped storage projects: the 1,200 MW Varandh Ghat project in Pune and Raigad districts and the 1,000 MW Koyna Stage-6 project in Satara district.

MahaGenco REL has also floated tenders to lease land and secure grid connectivity for 200 MW (8 × 25 MW) and 175 MW (7 × 25 MW) of solar projects, and is inviting consultancy bids and offtaker interest for a green hydrogen and green ammonia plant at Uran in Raigad district. The new BESS tender adds standalone, grid-scale batteries to this pipeline, giving MAHAGENCO a storage portfolio that spans batteries, solar-plus-storage hybrids and pumped hydro.

State-Level Push for Storage

The tender comes amid a sustained storage procurement drive by Maharashtra’s power utilities. The Maharashtra State Electricity Distribution Company Limited (MSEDCL) completed a 2,000 MW/4,000 MWh standalone BESS auction in late 2025, supported by viability gap funding (VGF) of ₹18 lakh per MWh from the Power System Development Fund. The auction drew 46 bidders offering an aggregate 11,110 MW. In its order dated March 6, 2026, the Maharashtra Electricity Regulatory Commission (MERC) adopted the discovered tariff of ₹1,65,998 per MW per month for a 15-year term, with capacity allocated to seven developers. MSEDCL expects these projects to be commissioned by FY 2027-28. The auction followed an earlier MERC approval, in March 2025, for 250 MW/500 MWh of BESS with a 500 MW greenshoe option.

MERC noted that this tariff was lower than those discovered in recent BESS tenders by Gujarat Urja Vikas Nigam (₹1.85–1.89 lakh per MW per month) and Rajasthan Rajya Vidyut Utpadan Nigam (₹1.77–1.78 lakh per MW per month). The order also records a Ministry of Power requirement of at least 20% local content, including indigenous energy management software, for disbursement of VGF support.

MSEDCL followed this with a Phase-3 Request for Selection on September 24, 2026, seeking 1,000 MW/4,000 MWh of BESS capacity on a five-year medium-term basis, with a 500 MW/2,000 MWh greenshoe option. The technology-agnostic tender provides for charging during solar hours and discharge between 5 PM and 7 AM, and requires minimum 95% monthly availability and 85% round-trip efficiency. Bids can be placed in blocks of 100 MW/400 MWh, with an earnest money deposit of ₹1 lakh per MW and a performance guarantee of ₹10 lakh per MW, and the full contracted capacity must be available within three months of signing the agreement.

MSEDCL has cited rising renewable penetration, projected energy demand of about 10,48,444 million units over FY 2025-26 to FY 2029-30, and the need to manage surplus solar power as reasons for large-scale storage procurement. Regulation is reinforcing this demand. Under MERC’s Renewable Purchase Obligation regulations, as amended in February 2024, the energy storage obligation for distribution licensees rises from 1.5% in FY 2024-25 to 4% by FY 2029-30, and energy stored from renewable sources counts towards overall RPO compliance.

Conclusion

MAHAGENCO’s 500 MW/1,600 MWh tender adds a substantial block of generator-led storage to Maharashtra’s expanding pipeline. Alongside MSEDCL’s battery auctions, MahaGenco REL’s solar-plus-storage plans and the proposed pumped storage projects, it reflects the state utilities’ push to integrate rising solar generation and meet evening and night-time electricity demand.

References (Official Sources)

MAHAGENCO Tenders 500 MW/1,600 MWh Battery Energy Storage Across Maharashtra

Tender Scope and Structure

MAHAGENCO’s Changing Generation Mix

State-Level Push for Storage

Conclusion

References (Official Sources)

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