Greenko Wins NTPC’s Tender for 3,000 MWh Energy Storage Project

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Greenko Energies won the NTPC Renewable Energy’s auction to set up interstate transmission system (ISTS)-connected energy storage systems of 3,000 MWh capacity with a minimum of 500 MW capacity to be installed anywhere across India.

Greenko won the entire capacity by quoting ₹2.79 million (~$33,985)/MWh/year.

According to the tender document, the bid was conducted on an evaluated price basis which means annual storage charges would be adjusted for cycle efficiency and availability on a 25-year basis.

The difference between the lowest and the highest quoted tariffs was more than 261% reflecting a wide range of assumptions. The highest quoted tariff was ₹10.1 million (~$122,588)/ MWh/year.

Even the second most competitive bid offered by HES Infra was over 35% higher than the winning bid at ₹3.77 million (~$45,762)/MWh/year.

The bid opening price was ₹3.19 million (~$38,722)/MWh/year.

The other companies that participated in the auction were IndiGrid 1, JSW Neo Energy, Enel Green, and Hinduja renewables.

The projects will be developed on a build, own, and operate basis.

NTPC Renewable Energy plans to use the energy storage facility to meet its round-the-clock (RTC) renewable energy needs with a wind-solar profile.

The company will now enter into a 25-year energy storage service agreement on an annual fixed charge basis with the selected bidder based on the terms and conditions of the request for selection.

The tender, issued in January this year, had mandated that storage projects that are already commissioned would not be considered under this bid, but projects that are under construction or not yet commissioned would be considered if they were not already accepted under other central or state programs.

Recently, the Ministry of Power issued the Renewable Purchase Obligation trajectory until the financial year 2029-2030. The notification for the first time included energy storage obligation to be met by all state DISCOMs.

In March 2022, the ministry issued guidelines to procure and utilize BESS as part of the generation, transmission, and distribution assets, along with ancillary services.

Last June, NTPC had invited expressions of interest from Indian and global companies to set up 1,000 MWh of grid-connected battery energy storage systems on the premises of its power projects across India.

In August, JSW Renew Energy Five, a special purpose vehicle of JSW Energy, won Solar Energy Corporation of India’s auction to set up pilot projects of 500 MW/1000 MWh standalone battery energy storage systems under a build, own, operate, and transfer model. JSW Renew Energy Five won the entire capacity by quoting ₹1.08 million (~$13,109)/ MW/ month.

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(Note: The article updates to add evaluated price calculation per the tender document)