New Delhi: Power Grid Corporation of India Limited (POWERGRID) has been declared the successful bidder under Tariff Based Competitive Bidding (TBCB) to establish a large-scale Battery Energy Storage System (BESS) at Kalikiri, Andhra Pradesh. The project is a significant step in India’s energy transition and aims to enhance grid stability across the state.
Project Overview and Scope
The BESS project, awarded under the Build-Own-Operate (BOO) model, will be located at the 400/220kV Substation in Kalikiri, Chittoor District. Key features of the project include:
- Installed Capacity: 150 MW / 300 MWh standalone battery system
- Cumulative BESS Plan: Part of a larger initiative targeting 2,000 MWh (1,000 MW x 2 hrs.) across selected APTRANSCO substations
- Funding Support: Viability Gap Funding (VGF) provided through the Power System Development Fund (PSDF)
The project is designed to meet on-demand energy requirements efficiently, enabling peak load management, renewable energy integration, and enhanced grid reliability.
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Strategic Importance and Benefits
The Kalikiri BESS project reinforces POWERGRID’s commitment to supporting India’s renewable energy integration and strengthening the national grid. By deploying large-scale battery storage solutions, the initiative will:
- Stabilize grid operations during variable renewable generation
- Improve energy efficiency and reduce dependency on fossil fuel peaking plants
- Support Andhra Pradesh’s long-term renewable energy and energy storage goals
Letter of Award and Next Steps
POWERGRID received the Letter of Award (LoA) on December 29, 2025, officially confirming its role in implementing the project. As the successful bidder under TBCB, POWERGRID will now proceed with detailed project planning, procurement, and construction under the BOO framework.
About POWERGRID
POWERGRID is India’s central transmission utility and a Navratna PSU under the Ministry of Power, Government of India. The company operates a nationwide high-voltage transmission network and leads in cutting-edge projects related to power transmission, renewable energy integration, and energy storage solutions, playing a key role in India’s energy infrastructure development.
