SECI BESS Tenders: How India's Battery Storage Auction Market Works

The Solar Energy Corporation of India (SECI) has become the primary procurement mechanism for large-scale battery storage in India. Under the Ministry of New and Renewable Energy's National Energy Storage Mission and the broader grid modernisation push, SECI has issued, awarded, and is in the process of issuing billions of rupees worth of standalone battery energy storage tenders.

For a developer, EPC, or equipment supplier seeking to participate in this market, understanding how SECI tenders work — their structure, qualification criteria, tariff determination, and contract terms — is essential. This briefing covers the key elements as of 2026.

SECI's Role in Battery Storage

SECI functions as a procuring entity and aggregator. It issues tenders on behalf of DISCOMs or the central government, awards contracts to developers who build and operate BESS assets, and signs long-term PPAs with the off-taker (typically a DISCOM or central agency). The developer receives a fixed tariff over the contract period (12–15 years) in return for delivering agreed capacity and energy services.

SECI does not typically procure BESS equipment directly — it procures energy storage services. The developer is responsible for equipment procurement, installation, commissioning, and long-term O&M. This means the BESS supplier's performance flows through to the developer's tariff obligation: if the system underperforms, the developer bears the cost.

Tender Structures: Standalone vs Hybrid

SECI issues two primary formats:

Standalone BESS tenders procure storage capacity without associated generation. The developer builds, owns, and operates a BESS that charges from the grid at low-demand periods and discharges during peak demand or frequency events. Remuneration is typically structured around availability (fixed charge) plus energy delivery (variable charge). Recent standalone tenders have targeted 500 MW / 1,000 MWh to 1,000 MW / 2,000 MWh.

Hybrid tenders procure renewable generation (solar, wind, or both) bundled with battery storage. The storage component is typically sized to ensure a minimum guaranteed dispatch of 50–70% of contracted capacity during specified peak hours. BESS sizing in hybrid tenders is driven by the generation profile and dispatchability requirement — commonly 4–6 hours of discharge at 0.5C.

Qualification Criteria

SECI tenders typically require bidders to demonstrate:

Financial criteria. Minimum net worth (varies by tender size, typically ₹1–2 Cr per MW of tendered capacity). Minimum annual turnover in the preceding 3 years. For large tenders (500 MW+), bank commitments or parent company guarantees are required.

Technical criteria. Prior experience in commissioning power or storage projects. For BESS-specific tenders, demonstrated experience is typically accepted in equivalent electrical infrastructure (substations, captive power, renewable generation). SECI is increasingly accepting BESS-specific experience as the market develops.

Consortium bidding. Large tenders permit consortium bids where the lead member holds at least 26% stake and provides the financial qualification. The technical qualification can be split across members. This opens the market to smaller developers partnering with experienced EPCs.

The VGF Model and Tariff Discovery

MNRE's Viability Gap Funding (VGF) mechanism is the primary subsidy instrument for BESS tenders. Under VGF:

• The Ministry of Power allocates ₹3,760 Cr (Phase 1) and ₹9,400 Cr (Phase 2) for standalone battery storage
• SECI tenders under this scheme invite bids on the VGF required per MWh of storage capacity (₹/kWh or ₹/MWh basis)
• The lowest VGF bidder wins — i.e., the developer requiring the smallest subsidy while meeting technical specifications
• The awarded tariff is fixed for the PPA term (typically 12 years)

This is a reverse auction on subsidy, not on tariff. The market tariff for storage services is set by the grid, and the VGF bridges the gap between market revenue and project economics.

For developers, this creates a precise calculation problem: model the project LCOS, determine the market revenue expected from energy arbitrage or ancillary services, and bid the VGF required to make the IRR acceptable. Getting this wrong — bidding too low and winning an unviable project — is a known risk in Indian renewable auctions.

Key Contract Terms to Understand

Contracted Capacity and Availability. Typically 95–97% availability on an annual basis, with liquidated damages for shortfall. This is not generation availability — it is storage system readiness. A BESS that is fully operational but not dispatched still counts as available.

Cycle Obligation. Many SECI standalone contracts specify a minimum number of charge-discharge cycles per year (typically 250–350). This is important for equipment selection: a system that can deliver 6,000 cycles over 15 years at one cycle per day meets a 300-cycle/year obligation comfortably.

Ramp Rate. SECI tenders for frequency services typically require 10–100% output in under 5 seconds. Full-power response requires an inverter specification that is not automatically included in standard BESS configurations — developers must specify this requirement to their BESS supplier.

End-of-Term Obligations. The PPA typically requires the developer to maintain minimum capacity (usually 80% of nameplate) through the contract term. This flows from the capacity degradation warranty — which must be structured back-to-back with the BESS supplier.

Upcoming Tenders and Market Size

The pipeline of SECI BESS procurement as of early 2026 includes:

• 4,000 MWh of standalone BESS under Phase 1 VGF (500 MW / 1,000 MWh blocks)
• Up to 19,000 MWh under Phase 2 VGF through 2027
• State-level procurement through Gujarat, Rajasthan, and Maharashtra DISCOMs, additive to the central SECI pipeline
• NTPC and NLC India standalone BESS tenders, separate from SECI

The total addressable market through 2030 — central plus state procurement — is estimated at 60,000–80,000 MWh. At ₹3.5–4.0 Cr/MWh system cost, this represents ₹2.1–3.2 lakh Cr of equipment procurement.

How Equipment Suppliers Should Prepare

BESS suppliers are not direct parties to SECI PPAs — the developer sits between the supplier and SECI. But the SECI technical specification flows down through the developer's RFQ to the supplier. Key requirements that Indian BESS manufacturers must meet for SECI-compliant projects:

• IEC 62619 certification for the battery system (mandatory)
• IEC 62477 or equivalent for power conversion systems
• IEC 61850 SCADA protocol for grid interface
• IS 16270 (BIS certification for battery storage systems) — increasingly required, currently in process for most Indian manufacturers
• IP54 outdoor rating for containerised systems
• Reference projects or FAT reports demonstrating rated capacity

SilicIndia Energies systems are IEC 62619 certified (Bureau Veritas) and meet SECI technical specifications for containerised BESS. IS 16270 and UL 9540A are in progress for 2026.

Getting Ready

If you are a developer evaluating SECI participation, or an EPC being asked to quote on SECI projects, the procurement preparation steps are:

1. Register on SECI's e-procurement portal (procurement.seci.co.in)
2. Track upcoming tenders on SECI's website and the MNRE tender portal
3. Get financial qualifications in order — bank lines, net worth certificates
4. Identify your BESS supplier and verify their technical qualification documentation
5. Build an LCOS model for your target tender to determine bankable VGF bid level

SECI tenders move quickly — from RFQ to bid submission is often 60–90 days. Equipment supplier due diligence cannot happen during that window. Identify and technically qualify suppliers before the tender drops.

For a technical qualification package or preliminary BESS specification for SECI tender formats, contact sales@silicindiaenergies.com.