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POWERGRID Invites Bids for 500 MW/1,000 MWh Battery Energy Storage Projects to Strengthen India's Grid

State-owned Power Grid Corporation of India Limited (POWERGRID) has invited bids for the deployment of a 500 MW/1,000 MWh Battery Energy Storage System (BESS) across multiple locations in India. The tender covers the design, engineering, supply, erection, testing and commissioning of two-hour duration battery storage systems under a long-term agreement, marking another significant step towards strengthening the country's grid flexibility and renewable energy integration.

The tender has been issued through POWERGRID's PRANIT e-procurement portal and covers Category A two-hour BESS projects on a site destination basis. A pre-bid meeting has been scheduled for July 28, 2026, while the last date for submission and opening of bids is August 17, 2026. The project is structured as an open works contract and is applicable for deployment across multiple states, enabling the transmission utility to support diverse grid requirements nationwide.

Under the scope of work, the selected contractor will be responsible for the complete execution of the project, including detailed engineering, procurement, manufacturing, transportation, installation, testing and final commissioning of the battery storage systems. The contract also includes project management, coordination with various agencies, preparation of engineering documents, training of POWERGRID personnel and successful handover of the systems after operational commissioning.

The tender places significant emphasis on domestic manufacturing and cybersecurity compliance. Equipment and components specified under the tender are required to be sourced from Indian manufacturers wherever applicable. In cases where imported equipment or embedded electronic components are used, they must undergo testing at certified laboratories to ensure they are free from malware, trojans and other cyber threats, in line with directives issued by the Ministry of Power and the Government of India. These requirements reflect the growing focus on securing critical power infrastructure against evolving cyber risks.

POWERGRID has also outlined comprehensive quality assurance requirements covering vendor selection, material procurement, manufacturing processes, inspection, testing, calibration, storage, transportation and commissioning. The utility has reserved the right to conduct quality audits and surveillance of contractors and their suppliers throughout the project lifecycle. Contractors must submit certified type test reports, engineering drawings and technical documentation, while all equipment must comply with applicable Indian standards and specified testing procedures before deployment.

In addition, the successful bidder will be responsible for conducting all pre-commissioning and commissioning tests using necessary specialised tools and equipment at its own cost. The contractor will also be required to prepare an environmentally responsible disposal plan for batteries and other components that may generate hazardous electronic waste at the end of their service life, reinforcing the project's focus on sustainable asset management.

Battery Energy Storage Systems are becoming a critical component of India's rapidly evolving power sector as renewable energy capacity continues to expand. BESS technologies store surplus electricity generated from solar and wind projects during periods of low demand and discharge it during peak consumption hours, helping maintain grid stability, improve frequency regulation, reduce renewable energy curtailment and provide backup power during contingencies. As renewable generation becomes a larger share of India's electricity mix, large-scale energy storage is increasingly viewed as essential for ensuring reliable round-the-clock power supply.

The latest tender aligns with India's broader clean energy strategy, which targets 500 GW of non-fossil fuel-based installed power capacity by 2030 while significantly expanding grid-scale energy storage infrastructure. POWERGRID's investment in battery storage is expected to enhance transmission system reliability, support the integration of intermittent renewable energy sources and strengthen the resilience of the national electricity grid as India accelerates its transition towards a cleaner and more flexible power system.