SECI Invites Bids for Large Battery Storage Project in Odisha
125 MW energy storage system to support grid stability and peak power demand
Bhubaneswar: The Solar Energy Corporation of India (SECI) has invited bids for setting up a large Battery Energy Storage System (BESS) in Odisha, marking a major step towards strengthening the state’s power grid. The proposed project will have a total capacity of 125 MW with 500 MWh of energy storage and will support GRIDCO, Odisha’s state-designated power agency.
The project aims to provide “on-demand” energy storage, helping Odisha manage peak electricity demand, balance renewable energy, and improve grid reliability.
Battery Storage to Support Power Supply
Under the tender, selected Battery Energy Storage System Developers will be responsible for designing, installing, operating, and maintaining the storage systems. Each system will have a four-hour discharge duration, allowing stored electricity to be supplied during high-demand periods or when power generation drops.
The battery storage facilities will be located at key grid substations across Odisha to provide localised grid support and reduce pressure on transmission networks.
Project Spread Across Six Locations
The 125 MW / 500 MWh project has been divided into six separate units across three clusters. Five projects will have a capacity of 20 MW each, while one project will have a capacity of 25 MW.
Cluster One includes two projects connected to the Padampur and New Bolangir grid substations. Cluster Two will cover projects at Bhatli and Basta substations. Cluster Three includes projects at Narendrapur and Tentuli Khunti substations. These locations have been selected to improve grid stability in different parts of the state.
Bidding Process and Timelines
SECI has adopted a two-stage competitive selection process for the project. Developers will first participate in an online e-bidding process. This will be followed by a separate e-reverse auction for each cluster to discover the final tariff.
Interested bidders must submit their online bids by January 21, 2025. Offline submissions, including required documents, must be completed by January 23, 2025.
Role of GRIDCO and On-Demand Operation
GRIDCO will be the offtaker of the stored energy. The battery systems must be available on an “on-demand” basis, meaning GRIDCO can instruct charging or discharging based on real-time grid requirements.
This flexible operation will help Odisha better handle fluctuations caused by renewable energy sources such as solar and wind, while also ensuring reliable power during peak hours.
Support Through Viability Gap Funding
To make the project financially viable, the tender is expected to include Viability Gap Funding (VGF). This support will help developers offer competitive storage tariffs while ensuring long-term project sustainability.
Projects will be developed within or near the identified grid substations, reducing land acquisition challenges and easing connectivity to the existing power network.
Boost to Clean Energy Transition
The battery storage project is seen as a critical step in Odisha’s clean energy transition. As the share of renewable energy increases, energy storage systems play a key role in ensuring round-the-clock power supply.
By storing excess electricity during low-demand periods and supplying it when needed, the BESS project will improve grid efficiency and reduce dependence on fossil fuel-based peaking power plants.
Opportunity for Energy Storage Developers
The SECI tender offers a significant opportunity for energy storage developers to participate in one of Odisha’s largest grid-scale battery projects. With clear project structure, defined substations, and government support, the initiative is expected to attract strong interest from the renewable energy and storage industry.
Once implemented, the project will strengthen Odisha’s power infrastructure and set an example for large-scale battery deployment in India.
