The West Bengal Department of Power has taken a major step to strengthen the state’s energy system by inviting bids for the development of 500 MW / 2000 MWh of standalone Battery Energy Storage Systems (BESS). The project is being implemented on behalf of the West Bengal State Electricity Distribution Company Limited (WBSEDCL) under a Build-Own-Operate (BOO) model. The main aim of this initiative is to improve grid stability, support renewable energy integration, and meet peak electricity demand in a more flexible and reliable manner.
The total planned capacity will be spread across four key locations in the state. Durgapur will host the largest share with 200 MW / 800 MWh, while Kharagpur, Hooghly-Arambag, and Jeerat will each have 100 MW / 400 MWh projects. These locations have been selected strategically to ensure better grid management and efficient power distribution across different regions.
Under the project structure, developers will be responsible for setting up the battery storage systems as well as the required transmission infrastructure to connect to the grid. This includes building the necessary network up to the interconnection points at their own cost. However, WBSEDCL will support the developers by providing land for the projects on a Right-To-Use basis at a nominal annual rent, reducing the initial burden on project developers.
The bidding process includes clear financial requirements to ensure serious participation. Bidders must submit an Earnest Money Deposit (EMD) of INR 3 lakh per MWh of the capacity they propose. This can be submitted in the form of a bank guarantee, payment on order instrument, or an insurance surety bond. In addition, selected developers will need to provide a Performance Bank Guarantee (PBG) before signing the Battery Energy Storage Purchase Agreement. This guarantee acts as a security to ensure that the project is completed on time. If there are delays beyond the scheduled commissioning date, penalties may be imposed through partial or full encashment of the PBG.
The project follows a strict timeline. The Request for Selection (RfS) was issued on March 6, 2026, and bid submission also started on the same day. Site visits have been scheduled between March 9 and March 21, 2026, allowing bidders to assess the project locations. Developers will be required to achieve financial closure within nine months from the effective date of the agreement. The entire project must be commissioned within the timeline specified in the tender documents.
The selection of developers will follow a single-stage, two-envelope bidding process. This will be followed by an e-reverse auction to determine the most competitive bids. This approach is expected to bring transparency and cost efficiency to the project.
Overall, this initiative is a significant move by the state government to modernize its power infrastructure. By investing in large-scale battery storage, West Bengal aims to ensure a more stable, reliable, and sustainable electricity supply while supporting the growing share of renewable energy in its power mix.
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