Power Mech Projects has announced a major contract win from West Bengal State Electricity Distribution Company Limited (WBSEDCL) for a substantial energy storage project. This landmark achievement marks a significant milestone in the company's expansion into the renewable energy storage sector.

Project Specifications and Contract Value

The awarded project involves the development of a 250 MW/1,000 MWh energy storage system, representing one of the larger energy storage initiatives in the region. The contract structure includes both immediate implementation and future expansion possibilities.

Revenue Impact and Business Implications

The contract ensures immediate revenue of ₹1,563.00 crores for Power Mech Projects from the base 250 MW/1,000 MWh installation. The inclusion of a 1 GWh expansion option provides additional growth potential, with the total contract value potentially reaching ₹3,126.00 crores if the option is exercised.

Strategic Significance

This WBSEDCL contract represents a strategic entry into the energy storage market for Power Mech Projects. The project's scale and the involvement of a major state electricity distribution company highlight the growing importance of energy storage solutions in India's power sector infrastructure development.

The 250 MW/1,000 MWh capacity will contribute to grid stability and renewable energy integration capabilities in West Bengal. The project structure, with its expansion option, demonstrates WBSEDCL's confidence in both the technology solution and Power Mech Projects' execution capabilities.

Power mech projects Limited has announced a major breakthrough in the renewable energy sector through its wholly owned subsidiary PM Green Private Limited. The subsidiary, acting as lead member, has secured a substantial Battery Energy Storage System (BESS) contract from West Bengal State Electricity Distribution Company Limited (WBSEDCL) worth ₹1,563 crores.

Project Specifications and Structure

The contract encompasses the establishment of a 250 MW/1,000 MWh Battery Energy Storage System at the Goaltore Substation in Paschim Midnapore. The project follows a Build, Own, Operate (BOO) model with a complete off-take guarantee from WBSEDCL, ensuring revenue security for the duration of the contract.

Greenshoe Option and Total Revenue Potential

The contract includes an attractive greenshoe option for an additional 250 MW/1,000 MWh capacity to be established at Durgapur Project Limited Campus in Durgapur. This expansion opportunity could significantly enhance the project's overall value proposition.

Strategic Significance and Management Commentary

Chairman and Managing Director Sajja Kishore Babu emphasized the project's strategic importance in India's renewable energy transition. He highlighted that as India crosses the threshold where renewable energy exceeds 50% of installed capacity, advanced peak-shaving solutions become crucial for grid balancing.

The management views this BESS project as more than a commercial achievement, positioning it as a foundational step in providing equilibrium between green energy adoption and grid reliability. The project represents PM Green's debut in energy storage solutions while leveraging Power Mech's decades of execution expertise and engineering legacy.

Company Background and Expertise

Power Mech Projects Limited, established in 1999, operates as a leading project and infrastructure construction company with global presence across more than ten countries. The company has built expertise across power, non-power, and infrastructure sectors, including Engineering, Procurement, Construction, Erection, Testing and Commissioning services.

Over the past fifteen years, the company has diversified its portfolio to balance power and non-power businesses, expanding into infrastructure segments such as Railways, Water Projects, Roads, Mining Development-cum-Operation, Cross Country Pipelines, Steel Plants, Material Handling & Manufacturing and Renewables. The company has emerged as the largest Operation & Maintenance player in India, positioning itself as a service provider of choice in the sector.