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India tier-2 DISCOM BESS pilots: 850 MW in commissioning

State DISCOMs in Haryana, Madhya Pradesh, Karnataka, Andhra Pradesh, and Telangana are commissioning 850 MW of BESS pilots in 2026. Most projects pair distribution-level BESS with peak shaving and ancillary services participation. Implementation models vary widely — informative for the next round of DISCOM storage planning.

By Arjun Nair··2 min read

In 50 words: State DISCOMs in Haryana, Madhya Pradesh, Karnataka, Andhra Pradesh, and Telangana are commissioning 850 MW of BESS pilots in 2026. Most projects pair distribution-level BESS with peak shaving and ancillary services participation. Implementation models vary widely — informative for the next round of DISCOM storage planning.

Pilot inventory

State-level DISCOM BESS pilots commissioning in 2026:

  • Karnataka (BESCOM): 240 MW (multiple sites, peak shaving + ancillary)
  • Haryana (UHBVN/DHBVN): 180 MW (substation-level, voltage support)
  • Andhra Pradesh (APEPDCL/APSPDCL): 160 MW (renewable firming)
  • Telangana (TSSPDCL/TSNPDCL): 140 MW (frequency response)
  • Madhya Pradesh: 130 MW (DT-level distribution support)

What's being tested

Pilot project applications vary:

  1. Substation-level peak shaving — reducing transformer overload during peak hours
  2. Distribution circuit-level support — voltage and reactive power support
  3. DT (Distribution Transformer) level micro-BESS — replacing or deferring DT upgrades
  4. Renewable firming — co-located with substation-connected solar
  5. Ancillary services participation — DISCOM-owned BESS bidding into emerging markets

What's been learned so far

Early operational learnings:

  • BESS at distribution voltage levels (11–33 kV) requires different equipment than transmission-level
  • Standardised RFP templates absent — each DISCOM is reinventing
  • O&M skills gap acute at distribution level
  • Communication and SCADA integration with DISCOM control rooms varies widely

Implementation models

Different DISCOMs are using different commercial structures:

  • DISCOM-owned BESS — pure asset ownership
  • EPC + Long-term O&M contract — DISCOM owns, contractor operates
  • BOOT (Build-Own-Operate-Transfer) — developer owns, sells services to DISCOM
  • Storage-as-a-Service — developer retains ownership, sells capacity/services

What's working, what's not

Working well:

  • Karnataka's substation-level deployments with clear technical specifications
  • Andhra Pradesh's renewable-firming co-location with existing substation infrastructure

Working less well:

  • Multi-site rollouts where site-specific engineering varies
  • O&M contracts without clear performance KPIs
  • Pilots without ancillary services market participation pathways

What developers should know

For developers responding to DISCOM BESS RFPs:

  • Specify the implementation model expected (owned vs BOOT vs SaaS)
  • Verify O&M scope and performance KPIs
  • Understand ancillary services participation pathway and revenue treatment
  • Verify metering, settlement, and dispatch arrangements

What to watch next

The first multi-state DISCOM BESS framework agreement (rumoured for Q3 2026 between several southern state DISCOMs) could create standardised contracting templates that accelerate the next 5+ GW of DISCOM-led storage projects.

Researched and drafted with AI assistance; reviewed and edited by the named editor within 24 hours of draft.

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