Andhra Pradesh Selects Developers for 2 GWh of Mega Battery Systems

• APTRANSCO awards contracts for 1,000 MW / 2,000 MWh of standalone battery storage across key substations.

In a significant step toward modernizing its grid, Andhra Pradesh has awarded contracts for 1,000 MW / 2,000 MWh of standalone battery storage across multiple substations. The projects were tendered by APTRANSCO, the state’s transmission utility, and represent one of the largest storage procurements in India to date.

Bondada Engineering secured the contract for the Hindupur site, while Power Grid Corporation of India (PGCIL) won the project at Kalikiri. Additional sites will host similar installations, collectively forming a major battery network designed to support rising solar and wind capacity.

These storage systems will play a central role in strengthening grid stability, smoothing renewable intermittency, reducing curtailment and providing services such as peak shaving, frequency regulation and backup reserves. As renewable penetration grows, batteries are becoming indispensable components of India’s grid architecture.

Analysts say Andhra Pradesh’s auction signals a broader trend: Indian states are beginning to treat storage as essential infrastructure rather than optional add-ons. With more tenders expected in 2025 and beyond, India’s storage market is entering a phase of rapid scale-up.

For developers, these long-term contracts offer valuable revenue certainty. For the grid, they represent a much-needed upgrade as electricity demand rises and renewable-energy targets accelerate.