M.P. Power Management Company Limited (MPPMCL) has taken a major step to strengthen Madhya Pradesh’s power system by inviting bids for a large standalone Battery Energy Storage System project. The proposed project will have a total capacity of 750 MW with 1,500 MWh of storage and will be developed under the Build-Own-Operate model. The initiative is aimed at providing reliable “on-demand” energy storage to support the state’s electricity distribution companies during peak and non-peak hours.
The total capacity of the project has been divided into four separate units to allow flexible participation. Two units will have a capacity of 250 MW with 500 MWh storage each, while the remaining two units will be smaller, with 125 MW and 250 MWh each. Through this structure, MPPMCL plans to improve grid stability, manage demand fluctuations, and support the growing share of renewable energy in the state’s power mix.
To make the project financially attractive, MPPMCL is offering support through a Viability Gap Funding mechanism. Under this support scheme, eligible developers can receive financial assistance of up to ₹18 lakh per MWh. This funding is expected to reduce project risks and encourage wider participation from battery storage developers. While MPPMCL has already identified the substations where the projects will be connected to the grid, the responsibility of arranging suitable land near these substations will rest with the selected bidders.
The bidding process will follow a single-stage, two-envelope system, covering techno-commercial and financial aspects. Interested bidders will need to purchase the tender documents by paying a non-refundable document fee of ₹29,500, inclusive of GST. In addition, a bid processing fee of ₹15 lakh plus 18 percent GST will be applicable.
Bidders will also need to meet several financial commitment requirements. An Earnest Money Deposit of ₹2,20,000 per MW must be submitted along with the bid. This can be provided either as a bank guarantee or through a payment on order instrument issued by approved institutions such as IREDA, PFC, or REC. After selection, successful bidders will be required to submit a Performance Bank Guarantee of ₹11,00,000 per MW for each project before signing the Battery Energy Storage Purchase Agreement.
MPPMCL has already shared the key timelines for the tender. The deadline for submitting pre-bid queries is February 6, 2026, up to 10:30 hours, followed by a pre-bid meeting on the same day at 12:00 hours at the MPPMCL regional office in Bhopal. Online bid submissions must be completed by February 23, 2026, while hard copies are to be submitted by February 25, 2026. The techno-commercial bids will be opened later that day.
MPPMCL has advised bidders to regularly check the ISN-ETS portal and the official company website for updates. The project is expected to play an important role in improving grid reliability and supporting Madhya Pradesh’s transition toward cleaner and more flexible energy systems.
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