Solar Energy Corporation of India (SECI) has issued a request for selection (RfS) for developers to set up 1,000 MW/8,000 MWh of pumped-storage projects (PSP) for “on Demand” usage under the PSP-I program. The interstate transmission system (ISTS)-connected projects will be set up on a build, own, operate model.

The tender targets an aggregate storage capacity of 8,000 MWh (1,000 MW × 8 hours) utilizing PSP on an on-demand basis. SECI will sign power purchase agreements (PPAs) with the successful bidders to provide storage services to buying entities over the entire PPA term.

SECI will be an intermediary nodal agency for using the energy storage facility and charging/discharging the PSP in line with respective agreements with the developer and the buying entities, based on due performance by the concerned parties.

The scheduled commencement supply date is 24 months from the PPA date.

Bids must be submitted by February 9, 2026. Bids will be opened on February 12.

Bidders with already commissioned pumped storage projects, those under construction, or not yet commissioned with untied capacity are eligible to participate. In such cases, they will be granted a longer PPA tenure, aligned with the time gap between the project’s actual start of storage operations (pumping or generation) and the scheduled commencement of supply date.

Bidders must submit a tender fee of ₹50,000 (~$600) plus applicable GST, an earnest money deposit of ₹1.11 million (~$13,380)/MW. The successful bidder must furnish a performance bank guarantee of ₹2.77 million (~$33,380)/MW. In addition, a payment security deposit of ₹500,000 (~$6,020)/MW has been mandated.

The scope of work includes design, financing, construction, ownership, operation, and maintenance of the pumped storage plants, along with land acquisition, statutory approvals, and development of transmission infrastructure up to the delivery point.

The interconnection voltage must be at least 220 kV on the ISTS, with the metering point defined at the ISTS delivery point or at the state transmission utility substation, as specified in the PPA.

Bidders must have executed projects in the last five years in power, steel, oil and gas, petrochemicals, fertilizers, cement, coal mining, including coal handling plants, or other process industries or infrastructure sectors.

These projects must have a cumulative value of ₹55.5 million (~$668,800)/MW and must have been operational for at least six months before bid submission. Each such project must be individually worth at least ₹555 million (~$6.69 million) and operational for at least six months.

Bidders must have a minimum net worth of ₹11.1 million (~$133,800)/MW of the quoted capacity, based on the financial year (FY) 2024–25 accounts or financials not older than seven days before bid submission. For instance, a 250 MW bid would require a net worth of ₹2.77 billion (~$33.38 million).

To establish liquidity, bidders must also demonstrate at least one qualifying parameter, including a minimum annual turnover of ₹7.65 million (~$92,200)/MW corresponding to the quoted capacity during FY 2024–25, excluding other income. For a 250 MW project, this translates to a minimum turnover requirement of ₹1.91 billion (~$23 million).

Maximum delays allowed in the commencement of supply are six months from the scheduled commencement supply date. Delays beyond that may lead to the encashment of the performance bank guarantee.

The developer must guarantee a minimum annual system availability of 90% on an annual basis. In case of any shortfall, the developer must pay a penalty to SECI so that SECI can pass the amount on to the buying entities under the PPA. The penalty will be 1.5 times the monthly capacity charges (₹/MW/month) for the capacity not made available during the relevant contract year. In addition, the developer must demonstrate 100% of the project’s dispatchable capacity on an annual basis.

At the time of bid submission, bidders must declare the monthly cycle loss (%) for the pumped storage project in the prescribed format. The declared monthly cycle loss must be below 25%. Based on this declaration, the system’s calculated AC-to-AC roundtrip efficiency must exceed 75% on a monthly basis. The developer will be liable to pay a penalty to the offtaker for any excess conversion losses beyond the declared levels.

Recently, SECI issued a request for selection to set up six standalone battery energy storage system projects in Odisha, with a cumulative capacity of 125 MW/500 MWh.

In the same month, SECI invited bids to set up 8,900 kW of grid-connected rooftop solar projects on Jawahar Navodaya Vidyalaya’s buildings under the renewable energy service company mode (RTSPV Tranche VI) in 13 states/union territories.