# SECI issues 500 MW battery storage tender, IEEFA flags execution risk

2026-08-26T09:43:24+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

The Solar Energy Corporation of India (SECI) has issued a tender for 500 MW/1000 MWh of standalone battery storage, the first tranche of a 4000 MWh target. The tender allows developers to sell 40% of capacity on the open market, with the rest bought by SECI for power distribution companies. The Hindu reports this is meant to integrate more solar power into the grid and reduce coal dependence. However, IEEFA analyst Dhruv Garg told Asian Power that India has commissioned only 219 MWh of the 12.8 GWh tendered between 2022 and May 2025, while 6.4 GWh was cancelled. Merchant projects account for 82% of operational capacity, but high capital costs and inconsistent market rules could make standalone projects unbankable, especially for smaller developers. Garg said execution, not tendering, is the main problem. The 12-year projects must be available 95% of the time and be installed near Fatehgarh-III substation in Rajasthan. The government estimates India needs 27 GW of grid-connected BESS by 2030, while the IEA expects 140 GW by 2040.

## Indian Opinion Analysis

The Hindu frames the SECI tender as a proactive government push for renewable integration, emphasising targets and official projections. Asian Power, via IEEFA, leads with execution failures: only 1.7% of tendered capacity is operational. The Hindu omits cancellation and financing hurdles, while Asian Power underplays the market-development aspect of the tender. A balanced reading: the government is scaling up procurement, but bankability constraints risk leaving capacity unbuilt. The first projects under this tender must reach commissioning by 2027 to test the model.

Corrected 1 October 2026: a closing sentence about a tribunal hearing, which no source reported, was removed.

## Coverage

Coverage: 2 sources, 1 pro-government, 1 government-critical
- asian-power.com (government critical) <https://asian-power.com/videos/india-merchant-battery-projects-face-bankability-test>
  Leads with poor execution rates and warns of bankability risks from policy uncertainty
- thehindu.com (pro government) <https://www.thehindu.com/news/national/centre-issues-largest-tender-on-battery-storage-for-solar-power/article65327017.ece>
  Highlights government targets and tender design as market development, omits cancellation data

This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 2 sources. Last updated 2026-10-01T06:12:53+00:00.

Tags: battery storage, CERC, Dhruv Garg, IEEFA, Ministry of Power
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