Noida, Sep 22 (APAC Media): Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has awarded two battery energy storage system (BESS) projects with a combined capacity of 900 MW/1,800 MWh to Oriana Power at a total contract value of around ₹3,870 crore, the company said on Monday.
Oriana Power said it has received two Letters of Award (LoAs) from MSEDCL for setting up the battery storage projects in Maharashtra.
The projects will operate under 15-year Battery Energy Storage Purchase Agreements (BESPAs), beginning on their respective commercial operation dates, the company said.
The first project has a capacity of 500 MW/1,000 MWh and an estimated contract value of ₹2,142 crore, while the second project has a capacity of 400 MW/800 MWh and is valued at approximately ₹1,728 crore.
According to Oriana Power, the projects were awarded through a tariff-based global competitive bidding process conducted through an e-reverse auction.
The projects will also receive support under the Viability Gap Funding (VGF) mechanism through the Power System Development Fund (PSDF) scheme. The company expects VGF support of approximately ₹324 crore based on the current estimated project cost.
MSEDCL had invited bids for procuring a total of 2,000 MW/4,000 MWh of capacity for battery energy storage. Oriana Power’s two projects account for 900 MW/1,800 MWh of the total capacity under the tender.
Electricity storage systems enable electricity to be stored and supplied during periods of demand, helping utilities manage fluctuations in power supply and demand and facilitate greater integration of renewable energy into the grid.
Oriana Power said the projects will strengthen its presence in the renewable energy and energy storage segment.
The awards come as Maharashtra continues to expand its energy storage infrastructure to improve grid flexibility and support the integration of renewable power.
Under the long-term agreements, the company will provide the contracted battery storage capacity to MSEDCL for a period of 15 years, according to the announcement.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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