Punjab Issues Big Tender for 500 MW Battery Storage Project

Punjab Issues Big Tender for 500 MW Battery Storage Project

January 17, 2026

Chandigarh, Punjab – The Punjab State Electricity Board has launched a major tender to build and run 500 megawatts (MW) of standalone battery energy storage systems (BESS) in the state, aiming to enhance power flexibility and grid stability as renewable energy grows. This initiative invites bids through competitive tariff-based bidding and requires selected developers to deliver energy storage capacity equivalent to 1,000 megawatt-hours (MWh).

Under the tender, the successful battery storage developer will be responsible for constructing and operating the BESS facilities and ensuring they are available for charging and discharging when needed by Punjab State Power Corporation Limited (PSPCL). The work includes building the storage systems and connecting them to the transmission network at two 220 kV substations, with the developer bearing all infrastructure costs up to the connection points.

The project is open to all battery storage technologies that meet the defined performance and technical criteria, giving bidders flexibility in choosing suitable solutions. Initially, the plan identifies two 250 MW/500 MWh installations at the Ablowal substation in Patiala and the Laltonkalan substation in Ludhiana, though these may be revised. Under the contract, PSPCL will control the charging and discharging schedules, with operations coordinated through the state load dispatch center.

To encourage high standards and local capability, the tender specifies that the energy management system software must be developed in India, and the use of refurbished or second-hand battery cells is not allowed. Developers must also handle construction of access roads and auxiliary infrastructure while ensuring their work does not interfere with ongoing substation operations.

This tender reflects Punjab’s efforts to integrate advanced storage solutions into its power system to support peak load management and renewable energy integration as part of broader clean energy goals.