West Bengal Launches 250 MW/1,000 MWh Battery Storage Project To Modernize Power Grid

The Department of Power, Government of West Bengal, on behalf of the West Bengal State Electricity Distribution Company Limited (WBSEDCL), has launched a major initiative to modernize the state’s power grid through a large-scale battery energy storage project. The department has issued a Request for Selection (RfS), formally dated October 10, 2025, inviting proposals for the development of a 250 MW/1,000 MWh Standalone Battery Energy Storage System (BESS) at the Goaltore Substation in Paschim Midnapore, West Bengal. This move is part of the state’s strategy to strengthen grid stability and integrate higher levels of renewable energy.

The project is being planned under the Tariff-Based Competitive Bidding system using the Build, Own, and Operate (BOO) model. The selected developer will be responsible for the continuous operation of the BESS for 15 years, starting from the scheduled commercial operation date. The BESS is designed with a four-hour storage capacity, which will play a critical role in managing peak electricity demand and ensuring a reliable power supply during non-solar hours. This capacity also supports the integration of intermittent renewable energy sources into the state grid, which is increasingly important as renewable generation grows.

In addition to the base capacity, the tender includes a “Green Shoe Option,” which allows for an additional 250 MW/1,000 MWh to be commissioned. This option effectively doubles the potential size of the project, reflecting West Bengal’s aggressive approach to enhancing grid flexibility and resource adequacy. The state aims to reach more than 1,500 MW of battery storage capacity by 2030, and this project forms a key part of that long-term plan.

Bidders are required to submit their proposals through a Single Stage Two Envelope system, which includes both technical and financial documents. The deadline for submission is set for November 14, 2025, at 2:00 P.M. After the selection of a developer, the project will move quickly into execution. It is structured into two units of 125 MW each, with the first unit expected to be commissioned within four and a half months of achieving financial closure. The second unit is scheduled to follow within the next four and a half months.

Financial requirements for participation in the tender are significant. Developers must provide an Earnest Money Deposit (EMD) of ₹50 crore, demonstrating their commitment to the project. Once the project is awarded, the successful bidder will be required to furnish a Performance Bank Guarantee (PBG) of ₹100 crore. These financial safeguards highlight the importance WBSEDCL places on the successful and timely execution of the project.

This battery energy storage initiative is seen as a critical step for West Bengal in enhancing power reliability and supporting the state’s transition toward a renewable energy-driven grid. By combining advanced energy storage technology with clear operational and financial frameworks, the project is expected to play a vital role in ensuring stability during peak demand periods and in integrating variable renewable energy generation efficiently. The tender reflects the state’s commitment to building a more resilient, modernized, and flexible power infrastructure to meet the growing energy needs of its population.

The project represents one of the largest battery storage initiatives in India to date and sets a benchmark for similar grid modernization efforts across the country.