NHPC Issues 500 MW/1000 MWh BESS Tender For Andhra Project

NHPC Limited has now come up with a fresh tender to boost energy storage projets in Andhra Pradesh. The Navratna company issued a tender accordingly. The tender seeks developers to develop a 500 MW/1000 MWh energy storage project under Tranche II. These will be developed near substations of the STU network in Andhra Pradesh. The last date for bid submission is March 17, 2025.

Following expansions in states like Kerala, which issued a tender for a 125 MW / 500 MWh (InSTS) connected standalone BESS (NHPC-Tranche-I-BESS) with viability gap funding (VGF), Gujarat, with its 500 MW/1000 MWh (Phase-VI) standalone Battery Energy Storage System (BESS) tender, and Rajasthan, with its first standalone BESS tender through Rajasthan Rajya Vidyut Utpadan Nigam (RRUVNL), Andhra Pradesh is making strides with its latest BESS tender.

On Demand Basis

The NHPC’s tender states, “The Battery Energy Storage System Developer (BESSD) would be required to set up a Battery Energy Storage System (BESS) and make the energy storage facility available to NHPC for charging/discharging on an ‘on-demand’ basis.”

Of the total 500 MW/1000 MWh capacity, the tender allocates 1000 MWh for injection at InSTS substations across three locations in Andhra Pradesh. The maximum capacities awarded in these three locations, along with connectivity voltage levels, bay availability, and land availability, are as follows:

• 400 kV Substation Jammalamadugu – 225 MW/450 MWh capacity, connected at 220/132 kV
• 400 kV Ghani Substation – 225 MW/450 MWh capacity, connected at 220/132 kV
• 220 kV Kuppam Substation – 50 MW/100 MWh capacity, connected at 220/132 kV

Efficiency Criterion

The tender requires bidders to guarantee a minimum AC-to-AC roundtrip efficiency (RtE) of 85% on a monthly basis. Developers will be liable for liquidated damages payable to the off-taker in case of excess conversion losses, based on the following conditions:

• If RtE is less than 70%, liquidated damages will be levied at 1.5 times the APPC tariff of the previous financial year of APDISCOMs for the excess conversion losses, assuming a system RtE of 85%.
• If RtE is between 70% and 85%, liquidated damages will be levied at the APPC tariff of the previous financial year of APDISCOMs for excess conversion losses, assuming a system RtE of 85%.
• If RtE is greater than 85%, an incentive of ₹0.50 per unit will be provided for the excess discharge of energy, assuming a system RtE of 85%.

Commissioning Timeline

The tender specifies the project’s commissioning timeline: “The Scheduled Commissioning Date (SCD) for the project shall be 18 months from the Effective Date of BESPA. For example, if the Effective Date of BESPA is June 5, 2025, then the SCD shall be December 5, 2026.”