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Karnataka Awards 350 MW/700 MWh Battery Storage Projects at Record-Low Tariff
Apr 05, 2025
Karnataka Power Transmission Corporation (KPTCL) has concluded its auction for 500 MW/1,000 MWh standalone Battery Energy Storage System (BESS) projects, attracting a record-low L1 tariff of INR 2.49 lakh/MW/Month.
Out of the total tendered capacity, 350 MW/700 MWh was awarded to:
- Sarala Project Works: 50 MW/100 MWh (L1 bidder)
- Oriana Power: 50 MW/100 MWh
- Pace Digitek: 250 MW/500 MWh
All three winners quoted the lowest bid of INR 2.49 lakh/MW/Month. Bids by NTPC Green Energy and JSW Neo Energy at INR 2.91 lakh/MW/Month and INR 3.09 lakh/MW/Month, respectively, were not selected due to higher tariffs.
Auction Details
- Tender launched: February 2025
- Project type: 7 grid-connected standalone BESS projects
- Total capacity: 500 MW/1,000 MWh
- Cycle requirement: Two cycles of full charge/discharge per day
- Location: Near substations on Karnataka’s STU network
- Land allocation: Managed by KPTCL
The projects are supported under the State Component of the Viability Gap Funding (VGF) Scheme, aiming to enhance grid stability, renewable integration, and energy security in Karnataka. This auction sets a new cost benchmark for BESS in India, marking a significant milestone in the country's energy storage landscape.