APTRANSCO Completes Auction For 1,000 MW/2,000 MWh Battery Storage Project, Marking Major Boost For Grid Stability

Transmission Corporation of Andhra Pradesh (APTRANSCO) has completed the auction process for a major standalone battery energy storage project in the state, marking a significant milestone for India’s energy storage sector. The project has a planned capacity of 1,000 MW/2,000 MWh and was originally tendered in August 2025. It received strong interest from several developers across the country, showing the rapid growth and rising demand for large-scale battery energy storage systems. These systems will help support on-demand power consumption and balance peak and off-peak electricity requirements in Andhra Pradesh.

The auction was carried out under a tariff-based competitive bidding process. Seven bidders participated in the auction, including SBR Electro Projects, Ecoren Energy, Bhagwati Group, Legion Energy Products, Bondada Engineering, POWERGRID, and Ecoren Energy. The lowest tariff discovered during the auction was ₹1.48 lakh per MW per month. SBR Electro Projects quoted 25 MW/50 MWh at this tariff rate. Ecoren Energy submitted a bid for 275 MW/550 MWh at ₹1.5 lakh per MW per month. Bhagwati Group quoted 75 MW/150 MWh at ₹1.5 lakh per MW per month, and Legion Energy Products quoted 25 MW/50 MWh at the same tariff rate. Bondada Engineering quoted 225 MW/450 MWh at ₹1.64 lakh per MW per month. POWERGRID bid 150 MW/300 MWh at ₹1.64 lakh per MW per month, while Ecoren Energy placed another bid of 225 MW/450 MWh at ₹1.65 lakh per MW per month. The competitive pricing and strong participation indicate market confidence and growing developer interest in battery storage deployment.

APTRANSCO also announced this tender on August 25, 2025. This is part of Phase II of a larger plan to integrate advanced energy storage solutions with renewable energy sources. The initiative aims to build a stable and reliable grid system for the state by storing excess power generated from renewable projects such as solar and wind, and supplying it during peak hours or when renewable generation is low. This will help reduce power fluctuations and improve overall grid reliability while supporting the state’s goal to expand renewable energy adoption.

The project will be implemented under a single-stage, two-envelope bidding system, requiring both technical and financial bids from developers. It will be executed on a Build, Own, and Operate model. Winning developers will sign a Battery Energy Storage Purchase Agreement with APTRANSCO and the state distribution companies. The project locations include several substations across Andhra Pradesh, such as Hindupur, Talaricheruvu, Kalikiri, Pampanuruthanda, Maradam, Simhachalam, and Gajuwaka.

With financial support from the Power System Development Fund through Viability Gap Funding, this project represents one of India’s most ambitious energy storage efforts. It is expected to help strengthen the state grid, improve renewable energy integration, and serve as a model for future large-scale energy storage development in India.