Coal India Awards ₹1,073.74 Crore Telangana BESS Project to Pace Digitek, Boosting Battery Storage Capacity
New Delhi, October 26, 2026: State-owned Coal India Limited has awarded a ₹1,073.74 crore Battery Energy Storage System (BESS) project in Choutuppal, Telangana, to Pace Digitek Limited. The project marks another significant development in India’s expanding grid-scale battery storage sector.
Pace Digitek emerged as the successful bidder among 11 participants in the competitive tender. The project is expected to strengthen India’s electricity storage infrastructure and support more efficient power management as the country expands its renewable energy capacity.
187.5 MW/750 MWh Battery Storage Project
The project involves developing a standalone battery energy storage facility with a capacity of 187.5 MW/750 MWh at Choutuppal in Telangana.
Designed for four hours of energy storage, the facility will be capable of storing electricity and supplying it to the grid when required, subject to operational conditions.
The reported tariff for the project is ₹3.14 lakh per MW per month. The development forms part of broader efforts to improve electricity supply management and integrate energy storage into India’s power infrastructure.
Pace Digitek Beats Competition from Major Industry Players
The tender attracted participation from several companies and joint ventures operating in India’s renewable energy and infrastructure sectors.
Among the unsuccessful bidders were the Kosol Energy–DEC Infrastructure joint venture, KPI Green Energy–Amara Raja, Larsen & Toubro, Jakson Limited, Waaree Renewable Technologies and O2 Power.
Pace Digitek’s selection strengthens its position in India’s emerging battery energy storage market, where utilities and infrastructure developers are increasingly investing in large-scale storage solutions.
Pace Digitek Expands Its Battery Storage Portfolio
The latest project adds to Pace Digitek’s growing portfolio of battery energy storage installations across India.
The company previously secured a 125 MW/250 MWh BESS project under a Telangana State Power Generation Corporation Limited (TSGENCO) tender. It has also received a Letter of Intent from BSES Rajdhani Power Limited for a 57.5 MW/115 MWh standalone battery storage project across four grid substations in Delhi.
These projects highlight the company’s expanding participation in the development of battery storage infrastructure for electricity distribution networks.
Battery Energy Storage Gains Importance in India’s Power Sector
Battery Energy Storage Systems are becoming increasingly important as India integrates more renewable energy sources, particularly solar and wind power, into its electricity network.
Because renewable energy generation can fluctuate depending on weather conditions and time of day, storage systems can help balance electricity supply and demand. Batteries can store surplus electricity and release it during periods of higher demand or lower generation.
Large-scale BESS facilities can also support peak-load management, improve grid flexibility and help electricity utilities manage variations in power availability.
The Telangana project reflects the growing role of energy storage in India’s evolving electricity infrastructure and energy transition.
Coal India Diversifies Beyond Conventional Coal Operations
Coal India is one of the world’s largest coal-producing companies and plays a major role in supplying fuel to India’s power generation and industrial sectors.
Its involvement in battery energy storage projects signals an expansion into complementary areas of the energy value chain. Investments in storage infrastructure could provide opportunities for the company to participate in India’s changing power sector while supporting the development of more flexible electricity systems.
The successful implementation of the Choutuppal project will be an important step in expanding standalone battery storage capacity in Telangana.
Outlook
The ₹1,073.74 crore project reinforces the growing commercial importance of large-scale battery storage in India. With Pace Digitek securing the contract, attention will now turn to project execution, infrastructure development and integration with the electricity grid.
As India’s renewable energy capacity expands, battery storage projects are expected to play an increasingly important role in improving grid flexibility and managing electricity demand.