Telangana’s Storage Milestone: Coal India and Sarus Infra to Deploy 1,500 MWh of Standalone BESS

Telangana’s Storage Milestone: Coal India and Sarus Infra to Deploy 1,500 MWh of Standalone BESS

March 31, 2026

In a landmark move for India’s energy storage sector, Coal India Limited (CIL) and Sarus Infrastructures have emerged as the winners in the Telangana Power Generation Corporation (TGGENCO) auction. The two entities have been awarded the mandate to set up 1.5 GWh (1,500 MWh) of standalone Battery Energy Storage Systems (BESS) across two strategic locations in Telangana. This project represents one of the largest standalone battery storage commitments in the country, signaling a major shift toward grid-scale storage solutions to manage renewable energy intermittency.

The project is divided equally between the two winners, with each securing 187.5 MW / 750 MWh of capacity. Coal India will develop its portion at the Choutuppal substation, with an estimated investment of ₹10.57 billion (~$112 million). Sarus Infrastructures will set up its system at the Maheswaram substation, valued at approximately ₹10.15 billion (~$108 million). Both systems will be connected to the grid at the 400/220 kV level and are required to provide one full operational cycle per day—specifically a 4-hour charge-discharge cycle—ensuring that peak demand can be met even when solar or wind generation is low.

To support the financial viability of such a large-scale technological undertaking, the projects will receive Viability Gap Funding (VGF) of ₹1.8 million per MWh. This funding will be disbursed in tranches, starting at financial closure and continuing through the first year of commercial operation. With a 15-year Power Purchase Agreement (PPA) and a strict 18-month commissioning timeline, this auction win not only bolsters Telangana’s grid resilience but also marks a significant diversification for Coal India as it evolves from a fossil-fuel giant into a key player in the green energy infrastructure of the future.