PowerGrid secures 2,000 MWh battery energy storage project

31 Dec 2025 , 11:15 AM

Power Grid Corporation of India Limited has secured a letter of award for developing a large-scale battery energy storage system in Andhra Pradesh. This marks a major step towards bolstering grid-level energy storage in the state. The company informed the exchanges that it emerged as the successful bidder under the tariff-based competitive bidding structure.

As per the company, the scope of work for this project includes the selection of battery energy storage developers for setting up an aggregate capacity of 2,000 MWh. Under this, 1,000 MW will have a two-hour storage duration for on-demand usage.

Furthermore, the company said that it is planning to develop the project under a build-own-operate framework. Additionally, it is supported by Viability Gap Funding via the Power System Development Fund.

PowerGrid will implement a 150 MW/300 MWh standalone battery energy storage system at the 400/220 kV sub-station. The project is to be developed at Kalikiri in Chittoor, Andhra Pradesh. The unit is to be located at a selected sub-station of APTRANSCO and is supposed to improve grid flexibility and reliability .

This battery storage system is expected to support on-demand power requirements and improvise the integration of renewable energy into the grid. This will also bolster the transmission infrastructure in Andhra Pradesh.

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