The West Bengal Department of Power has invited bids for the development of 500 MW/2000 MWh of standalone Battery Energy Storage Systems (BESS) to strengthen the state’s power infrastructure and support renewable energy integration.
The project is being implemented on behalf of West Bengal State Electricity Distribution Company Limited under a Build-Own-Operate (BOO) model. The initiative aims to enhance grid stability, manage peak demand efficiently, and improve overall reliability of electricity supply.
The total capacity will be distributed across four strategic locations. Durgapur will host the largest share with 200 MW/800 MWh, while Kharagpur, Hooghly-Arambag, and Jeerat will each accommodate 100 MW/400 MWh projects. These locations have been identified to optimise grid management and ensure efficient power distribution across the state.
Under the project framework, developers will be responsible for setting up the battery storage systems along with the required transmission infrastructure up to the grid interconnection points at their own cost. However, WBSEDCL will provide land on a Right-To-Use basis at a nominal annual rent, easing the initial investment burden for developers.
The bidding process includes defined financial safeguards to ensure serious participation. Bidders are required to submit an Earnest Money Deposit (EMD) of INR 3 lakh per MWh, which can be furnished through a bank guarantee, payment on order instrument, or insurance surety bond. Selected developers will also need to provide a Performance Bank Guarantee (PBG) prior to signing the Battery Energy Storage Purchase Agreement, ensuring timely project execution. Delays beyond the scheduled commissioning timeline may attract penalties through partial or full encashment of the PBG.
The Request for Selection (RfS) for the project was issued on March 6, 2026, with bid submissions commencing on the same day. Site visits were scheduled between March 9 and March 21, 2026, enabling prospective bidders to assess project locations. Developers are required to achieve financial closure within nine months from the effective date of the agreement, with commissioning timelines defined in the tender documents.
The selection process will follow a single-stage, two-envelope bidding mechanism, followed by an e-reverse auction to determine competitive tariffs, ensuring transparency and cost efficiency.
This initiative marks a significant step by the West Bengal government towards modernising its power infrastructure. By scaling up battery energy storage deployment, the state aims to enhance grid resilience, support increasing renewable energy penetration, and ensure a stable and sustainable power supply.
