NTPC Vidyut Vyapar Nigam (NVVN) has issued a request for selection for developers to set up an interstate transmission system (ISTS)-connected 250 MW/1,000 MWh standalone battery energy storage systems (BESS) under the build-own-operate model.

The BESS will be established with a viability gap funding (VGF) with a greenshoe option of an additional capacity of up to 250 MW/1,000 MWh.

The project will provide NVVN with energy on an on-demand basis, as required during the peak and off-peak hours.

Bids must be submitted by March 24, 2025. Bids will be opened on March 25.

Bidders must furnish an earnest money deposit of ₹1.4 million (~$16,747.54) and a tender document fee of ₹22,500 (~$259.52). They must also submit a tender processing fee of ₹1.5 million (~$17,301.18) plus 18% GST for the quoted project capacity.

Selected bidders must submit a performance bank guarantee of ₹3.6 million (~$41,891.92)/MW.

The scope of work entails setting up the BESS, its charging power with single cycles charging/discharging operation, and the project’s interconnection with the interstate transmission system (ISTS). The charging power must preferably come from renewables, with other sources meeting any remaining requirements.

The total 1,000 MWh (250 MW X 4 hours) BESS capacity must be distributed and connected to ISTS substations anywhere in India.

Successful bidders must also operate and maintain the project, guaranteeing a minimum monthly system availability of 95%. If NVVN is unable to offtake the power, it will be liable to pay 52.88% of the discovered composite energy tariff to the developer for the difference between the energy made and energy scheduled on a monthly basis.

Successful bidders must design the BESS to provide a maximum of four hours of discharge capacity.

The minimum bid size is 200 MWh (50 MW x 4 hours) and the maximum 500 MWh (125 MW X 4 hours). NVVN may allocate and tie up additional capacity up to 250 MW/1,000 MWh under the greenshoe option.

Projects that have already been commissioned will not be considered under this tender. However, projects under construction or not yet commissioned will be considered if they are not accepted under any other central or state programs.

The responsibility of getting ISTS connectivity will vest with the developer.

A shortfall of system availability will attract liquidated damages of twice the composite discharge value.

The VGF amount applicable for each selected bidder towards setting up the BESS will be limited to ₹2.7 million (~$31,142.12)/MWh or 30% of the awarded project capacity’s capital cost, whichever is lower.

Bidders must have a net worth of at least ₹14.5 million (~$167,567.67)/MW of the quoted capacity in MW, or ₹3.6 million (~$41,891.92)/MWh in MWh capacity in the preceding financial year.

They must have an annual turnover of ₹48.4 million (~$558,251.34)/MW of the quoted capacity in MW or ₹12.1 million (~$139,562.83)/MWh in MWh capacity in the current financial year.

Recently, NVVN awarded Solarium Green Energy a tender to install 6,929 kW grid-connected rooftop solar projects at multiple locations of the central armed forces and departments under the Ministry of Home Affairs in Uttar Pradesh.