NHPC has invited bids to set up 500 MW/1,000 MWh standalone battery energy storage systems (BESS) connected to the intrastate transmission system in Andhra Pradesh (Tranche II).

Developers will be eligible for viability gap funding of ₹2.7 million (~$32,114)/MWh or 30% of the project’s capital cost, whichever is lower.

Bids must be submitted by March 17, 2025. Bids will be opened on March 20.

Bidders must submit an earnest money deposit ₹341,000 (~$3,930)/MWh.

Selected bidders must furnish a performance bank guarantee of ₹852,500 (~$9,826)/MWh.

They must also provide a payment security deposit of ₹500,000 (~$5,763)/MWh to NHPC before declaring the commissioning of the project’s first part capacity.

Successful bidders must ensure the BESS is available for at least one operational cycle per day, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC roundtrip efficiency of 85% monthly.

They must also ensure the BESS is available for two operational cycles daily, maintain a minimum monthly system availability of 95%, and guarantee an AC-to-AC roundtrip efficiency of 85% monthly.

Successful bidders must employ commercially established and operational technologies that are compliant with the guidelines specified in codes and standards to minimize technology risks.

They must commission the projects within 18 months of signing the battery energy storage purchase agreement.

Bidders must pay a processing fee based on cumulative capacity:

• ₹300,000 (~$3,457) + 18% GST for 40 MWh
• ₹500,000 (~$5,763) + 18% GST for above 40 MWh and up to 100 MWh
• ₹1 million (~$11,526) + 18% GST for above 100 MWh and up to 250 MWh
• ₹2 million (~$23,052) + 18% GST for above 250 MWh and up to 500 MWh
• ₹3 million (~$34,578) + 18% GST for above 500 MWh

Bidders must have a minimum net worth of ₹3.4 million (~$39,187)/MWh of the quoted capacity during the last financial year’s end or seven days before the bid submission deadline.

In January, NHPC issued a tender to develop 125 MW/500 MWh standalone BESS connected to the intrastate transmission system in Kerala (Tranche I).

Onix Renewable, Jindal India Renewable Energy, NTPC Renewable Energy, Kolar Solar Power (Rays Power Infra), ReNew Solar Power, and Adani Renewable Energy Holding Nine (Adani Green) won NHPC’s auction to set up 1,200 MW solar power projects with 600 MW/1,200 MWh energy storage systems.