Telangana Discovers BESS Tariff At ₹2.40 Lac/MW/Month

Telangana has awarded its 500 MWh with a standalone Battery Energy Storage System (BESS) project tender at a tariff in the range of Rs. 2.40-2.45 lakh/MW/month. This is one of the first tenders released by Telangana Genco (TGGENCO) for a 500 MWh (250 MW x 2 hours) project. TGGENCO issued the tender with Viability Gap Funding (VGF) in February this year, and the results were announced within a month. The L1 price discovered in TGGENCO’s latest tender was 9% higher than the lowest price found in standalone bids with VGF.

According to the tender results, Telangana Genco awarded the project to three bidders. Bondada Engineering secured 50 MW capacity at Rs. 2.40 lakh/MW/month, while TrueRE-Oriana Power won 50 MW at Rs. 2.45 lakh/MW/month. Pace Digitek was awarded 125 MW at Rs. 2.452 lakh/MW/month. As per the tender conditions, developers can now avail VGF up to Rs. 27 lakh/MWh or 30% of the capital cost for BESS, whichever is lower.

Previous Tender: A Brief Comparison 

In February 2025, SECI awarded its 125 MW/500 MWh standalone BESS tender to JSW Energy at ₹441,000/MW/month, which is higher than TGGENCO’s latest tender. However, TGGENCO’s tender price is higher than Rajasthan Rajya Vidyut Utpadan Nigam Limited’s (RVUNL) 500 MW/1,000 MWh standalone BESS tender, which had the lowest bid at Rs. 2.21 lakh/MWh by Solar World Energy for 125 MW/250 MWh. In contrast, it is lower than NHPC’s first solar-plus-storage 1.2 GW tender, awarded to Onix Renewables at ₹3.09/kWh, which included a 600 MW/1,200 MWh energy storage system (ESS).