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Power Mech Projects Enters Energy Storage Market with 2 GWh BESS Order in West Bengal

Hyderabad-based EPC major Power Mech Projects has marked its entry into the battery energy storage segment after its wholly owned subsidiary, PM Green, secured a major contract from the West Bengal State Electricity Distribution Company (WBSEDCL).

The order, valued at Rs1,563 crore, involves the development of a 250 MW/1,000 MWh Battery Energy Storage System (BESS) at the Goaltore substation in Paschim Midnapore, West Bengal. The contract also includes a greenshoe option for an additional 250 MW/1,000 MWh BESS at the Durgapur Project Ltd campus, which would take the total potential order value to approximately Rs3,126 crore.

The projects will be executed under a Build, Own, and Operate (BOO) framework, with WBSEDCL providing a 100% offtake guarantee. Power Mech stated that the scope of work covers end-to-end responsibilities, including design, financing, engineering, procurement, construction, operation, and long-term maintenance of the energy storage facilities.

Both installations are required to be completed within 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA). The agreement will remain valid for 15 years, with an option to extend the term by an additional five years from the scheduled commissioning date.

Commenting on the development, Sajja Kishore Babu, Chairman and Managing Director of Power Mech Projects, highlighted the strategic importance of energy storage as renewable energy capacity continues to rise across India.

“With renewable sources now accounting for over half of India’s installed power capacity, maintaining grid stability has become a critical priority. Advanced storage solutions such as BESS are essential to balance variability and ensure reliability during peak demand,” he said.

He added that while PM Green is newly established, it benefits from Power Mech’s extensive engineering expertise and execution experience. “Securing a project of this scale as our first step into energy storage underscores our capability to deliver complex infrastructure projects,” he noted.

Babu further emphasized that the project reflects the company’s long-term vision of enabling round-the-clock access to clean and dependable energy, while also signaling its expansion into new segments within the power sector.