PowerGrid has bagged a contract to develop a 2,000 MWh battery energy storage system in Andhra Pradesh, marking its foray into strengthening the state’s grid-level energy storage infrastructure. 

The project was awarded under the tariff-based competitive bidding framework. The storage system will be structured as a 1,000 MW capacity with a two-hour storage duration, enabling on-demand usage. A key component of the project is the installation of a 150 MW/300 MWh standalone battery energy storage system at Kalikiri, Chittoor district, at a 400/220 kV substation.

The facility, aimed at improving grid reliability and flexibility, will be developed under the build-own-operate model and is supported by viability gap funding (VGF) from the Power System Development Fund. This initiative is expected to enhance the integration of renewable energy and contribute to the overall stability of the grid.