Successful bid price of backup power battery project in India 2025

Specifically, recent auction results for storage have been record-breaking: the latest tender for standalone battery energy storage systems (BESS) with two hours’ duration in April 2025 saw a winning bid of 2.8-2.85 lacs/MW/month, without any subsidy like the Viability Gap Funding.
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3 FAQs about [Successful bid price of backup power battery project in India 2025]

What is the lowest bid for battery capacity in India?

That lowest bid was for 50 MW/100 MWh of battery capacity. Karnataka-based Pace Digitek secured 125 MW/250 MWh and TrueRE-Oriana Power 50 MW/100 MWh at INR 245,000/MW/month in the under-subscribed tender.

How important is battery funding for Bess?

Battery costs constitute over 50 per cent of BESS capital expenditure. The report states that viability gap funding (VGF) of up to 40 per cent, capped at ₹2.7 million/MWh, continues to play a critical role in ensuring tariff sustainability. Without VGF, tariffs are expected to rise by over 30 per cent.

What steps should be taken to improve battery manufacturing?

Critical preceding steps should include incentives for pack and BESS manufacturing, increased duty on imports of containerised systems, zero import duty on battery manufacturing equipment, a reduced GST of 5% on critical BESS components, and a gradual increase in DCR content.

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