SECI Issues RfS For 125 MW/500 MWh Battery Energy Storage Projects In Odisha

The Solar Energy Corporation of India Limited (SECI) has announced a significant initiative to establish 125 MW/500 MWh standalone Battery Energy Storage Systems (BESS) in Odisha. The project, supported through Viability Gap Funding under the Power System Development Fund (PSDF), is aimed at providing “on-demand” energy storage for GRIDCO Limited. This will help manage electricity requirements during peak and off-peak hours, strengthening the reliability and efficiency of the state’s power system.

The plan involves setting up six grid-connected BESS projects across identified substations in Odisha. Five of the projects will each have a capacity of 20 MW/80 MWh, while one project will have a slightly larger capacity of 25 MW/100 MWh. These projects will be developed under a Build-Own-Operate (BOO) model for a tenure of 15 years, ensuring long-term operational stability and management. The BESS projects are technology-agnostic, giving developers the flexibility to select battery storage systems that meet specific performance standards. These include a minimum of 420 operational cycles per year and a guaranteed round-trip efficiency, ensuring reliable and efficient energy storage.

Financial requirements for bidders have been clearly outlined by SECI. A non-refundable document fee of INR 20,000, inclusive of GST, is required. Additionally, bidders must pay a bid processing fee of INR 20,000 per MW plus applicable GST, capped at INR 15,00,000 plus GST. An earnest money deposit (EMD) of INR 9,00,000 per MW must be submitted in the form of a bank guarantee, insurance surety bond, or demand draft. Once selected, bidders will also need to provide a performance bank guarantee (PBG) of INR 22,50,000 per MW prior to signing the Battery Energy Storage Purchase Agreement (BESPA). These financial conditions ensure that only serious and capable bidders participate in the process, supporting the successful execution of the project.

The selection process for the projects will follow a single-stage, two-envelope competitive bidding system, culminating in an e-reverse auction. The Request for Selection (RfS) was officially issued on December 18, 2025. Financial closure for the projects is expected to be achieved within six months from the effective date of the BESPA. The entire project capacity is scheduled to be commissioned within 18 months of the BESPA, indicating a swift implementation timeline for this strategic energy storage initiative.

Project locations have been carefully chosen to ensure optimal grid performance. The six substations identified for the BESS installations include Padampur, New Bolangir, Bhatli, Basta, Narendrapur, and Tentuli Khunti. GRIDCO will provide the necessary land for the projects on a right-to-use basis at a nominal rent of INR 1 per project for the entire tenure, making the initiative economically viable and practical for developers.

The establishment of these BESS projects represents a major step in integrating renewable energy into Odisha’s power grid. By enabling “on-demand” energy storage, the projects will not only enhance grid stability but also support the broader adoption of solar and other renewable energy sources. This initiative aligns with India’s national goals of transitioning to cleaner energy, reducing dependence on fossil fuels, and creating a more sustainable and reliable electricity system. The BESS projects in Odisha are expected to serve as a model for future energy storage initiatives in India, demonstrating the importance of combining technology, financial planning, and policy support to accelerate the country’s renewable energy ambitions.