PowerGrid bags 2,000 MWh battery energy storage project in Andhra Pradesh

Power Grid Corporation of India Limited (PowerGrid) has received a letter of award for setting up a large-scale battery energy storage system in Andhra Pradesh, marking a key step in strengthening grid-level energy storage in the state. The company informed stock exchanges that it has been declared the successful bidder under the tariff-based competitive bidding framework.

The project involves the selection of battery energy storage developers for establishing a cumulative capacity of 2,000 MWh, structured

as 1,000 MW with a two-hour storage duration, for on-demand usage. The project will be developed under the build-own-operate model and is supported by Viability Gap Funding through the Power System Development Fund.

As part of this broader mandate, PowerGrid will implement a 150 MW/300 MWh standalone battery energy storage system at the 400/220 kV sub-station at Kalikiri in Chittoor district of Andhra Pradesh. The facility will be located at a selected sub-station of APTRANSCO and is aimed at improving grid flexibility and reliability .

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The letter of award was received by PowerGrid on December 29, 2025. The company has been declared the successful bidder under the tariff-based competitive bidding process for this project.

The battery storage system is expected to support on-demand power requirements and enhance the integration of renewable energy into the grid, while strengthening the overall transmission infrastructure in Andhra Prades.

Power Grid Corporation of India Limited shares were trading lower at ₹259.45 as of December 30, 4 pm.