West Bengal Floats Tender for 500 MW/2 GWh Standalone Battery Storage

Background and Context

The West Bengal Department of Power, acting on behalf of the West Bengal State Electricity Distribution Company (WBSEDCL), has issued a major tender for the deployment of 500 MW/2,000 MWh of standalone battery energy storage systems. This initiative represents a strategic push by the state to bolster grid stability and manage peak demand through large-scale energy storage, moving beyond traditional generation-only projects.

Key Details

The tender follows a build-own-operate model, with the storage systems designed to be technology-agnostic. The scope of work includes the installation, integration with WBSEDCL’s distribution network, and the provision of on-demand charging and discharging services. WBSEDCL will provide the necessary land for these projects at a nominal annual rent of ₹1 per project. The entire 2 GWh capacity is earmarked for injection at four specific substations of the West Bengal State Electricity Transmission Company.

Successful bidders are required to install projects with a minimum capacity of 100 MW/400 MWh. Operational requirements are stringent, mandating at least one operational cycle per day with a minimum of four hours of discharge and a 95% monthly system availability. The Battery Energy Storage Purchase Agreement (BESPA) will remain valid for 15 years from the date of commissioning, with a project completion timeline of 18 months from the effective date of the agreement.

What This Means for EPCs and Developers

For EPC contractors and developers, this tender offers a structured entry point into the West Bengal storage sector. The state’s decision to provide land significantly lowers the initial capital expenditure (CAPEX) risk. However, bidders must be prepared to meet rigorous financial criteria, including a net worth of at least ₹10 million/MW and an annual turnover of ₹5 million/MWh. The requirement for commercially established technologies is intended to mitigate technical risks, ensuring that projects are commissioned within the 18-month window.

What Happens Next

The industry is now looking toward the bid submission deadline of April 24, 2026, with the bid opening scheduled for May 7, 2026. Prospective bidders must carefully evaluate the performance bank guarantee requirements—set at ₹750,000/MWh—and the potential for using insurance security bonds or letters of undertaking from agencies like REC or PFC. As West Bengal continues to integrate storage into its energy mix, following its February 2026 solar-plus-storage tender at Goaltore, this project will serve as a bellwether for future large-scale storage auctions in Eastern India.