Karnataka Power Transmission Corporation Limited (KPTCL) has successfully concluded the auction for its 500 MW/1,000 MWh standalone Battery Energy Storage System (BESS) project in Karnataka. The auction saw strong participation and competitive bidding, setting a benchmark tariff in India’s growing renewable energy sector. The lowest discovered tariff was ₹2.495 lakh per MW per month, with bids ranging from ₹2.49 to ₹2.54 lakh per MW per month.

Out of the total 500 MW/1,000 MWh capacity offered, contracts were awarded for 350 MW/700 MWh. Pace Digitek emerged as the largest winner, securing 250 MW/500 MWh at a tariff of ₹2.5449 lakh per MW per month. Sarala Project Work Private Limited won 50 MW/100 MWh at the lowest tariff of ₹2.495 lakh per MW per month. Oriana Power also secured 50 MW/100 MWh with a similar bid to Pace Digitek at ₹2.5449 lakh per MW per month.

The tender for the BESS project was issued by KPTCL in February 2025. As part of the project conditions, the battery storage systems must be located near substations under Karnataka’s state transmission utility network. Land for these sites will be identified and provided by KPTCL.

The selected developers are responsible for setting up, operating, and maintaining the BESS facilities. The systems must complete two charge and discharge cycles each day. The State Load Despatch Centre (SLDC) will handle the scheduling of these operations on behalf of the Electricity Supply Companies (ESCOMs). The energy used for charging can come from any source, and the systems must meet minimum efficiency standards. This auction marks a major milestone for battery storage development in the state.