Coal India Limited has secured a major battery energy storage project in Telangana after emerging as one of the successful bidders in the standalone Battery Energy Storage System (BESS) auction conducted by the Telangana Power Generation Corporation. The project marks another important step in the company’s expansion into the clean energy sector and supports the state’s efforts to strengthen grid reliability.
Under the auction results, Coal India has been awarded a capacity of 187.5 MW, equivalent to 750 MWh of battery energy storage. The project will be developed at the Choutuppal substation under the Telangana Transmission Corporation. Sarus Infrastructures also secured an identical 187.5 MW/750 MWh allocation through the competitive bidding process.
The auction discovered a final tariff of ₹3.14 per kWh. To support the deployment of large-scale energy storage, the Government of India will provide Viability Gap Funding (VGF) of ₹18 lakh per MWh. The financial assistance will be released in three phases based on the achievement of key project milestones.
Following the award, Coal India has invited bids to appoint an owner’s engineer-cum-engineering consultancy firm. The selected consultant will provide support during both the pre-award and post-award stages and oversee engineering aspects of the EPC implementation for the project.
The battery energy storage system is expected to improve grid stability by storing electricity during periods of low demand and supplying power during peak consumption hours. The project is required to be commissioned within 18 months of contract signing. It will deliver at least one complete four-hour charge-discharge cycle every day while maintaining a minimum annual system availability of 95%. The project also reflects Coal India’s continued diversification into renewable and clean energy infrastructure.
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