NHPC Issues Tranche-I 125 MW/500 MWh BESS Tender In Kerala

NHPC has released a tender to build a battery energy storage system (BESS) to select developers for setting up 125 MW / 500 MWh (InSTS) connected standalone BESS (NHPC-Tranche-I-BESS). The project would be located in Kerala with viability gap funding (VGF) support (2024-25). NHPC has sought bids until February 21, 2025.

The NHPC tender explained, “The tender intends to set up InSTS-connected Projects of Standalone Battery Energy Storage Systems (BESS), for an aggregate storage capacity of 500 MWh (125 MW x 4 hrs) to meet evening peak requirements with single cycle charging/discharging operation of BESS with project to be located in the State of Kerala connected with the State Transmission Utility.”

NHPC tender mentioned, “The battery energy storage system developer (BESSD) developer would be required to set up a Battery Energy Storage System (BESS) to make an energy storage facility available to NHPC for charging/discharging of the BESS on an “on-demand” basis.” The tender added, “The 125/500 MW/MWh would be located across four locations, namely 35/140 MW/MWh BESS with 220kV Substation, 40/160 MW/MWh project with 220kV Pothencode Substation, and 40/160 MW/MWh with 110kV Substation Sreekantapuram with 110 kV Connectivity each. The fourth project would be 10/40 MW/MWh with 33kV connectivity voltage and 110kV Substation at Ambalappuram.”

The tender mentioned, “The total project capacity of 125 MW / 500 MWh would be located in the vicinity of substations of the STU network in the State of Kerala. The land would be provided on a right-of-use basis to the BESSD at an annual rent of Rs.1/- per project (proposal). Through a suitable agreement with KSEBL, the same would be facilitated by NHPC.”

The tender mentioned, “The land area would be given to the BESSD for Right of Use (ROU) within 60 days from the Effective Date of the BESPA. In case of any delay in signing the ROU agreement of land to the BESSD, the Financial Closure and Commissioning milestones would be suitably extended.”

BESSD Would Guarantee a Minimum AC to AC Roundtrip Efficiency (RtE) of 85%

The tender mentioned, “The BESSD would guarantee a minimum AC-to-AC roundtrip efficiency (RtE) of 85% for the system monthly. The BESSD would be liable for Liquidated Damages to the off-taker, if any, on account of excess conversion losses, based on the following conditions:

(a) For RtE <70%, there shall be liquidated damage @ 1.5 times the APPC tariff of the previous financial year of KSEBL levied upon the excess conversion losses, considering system RtE = 85%.

(b) For 70% ≤ RtE < 85%, there shall be a liquidated damage levied @ APPC tariff of the previous financial year of KSEBL levied upon excess conversion losses considering system RtE = 85%.

(c) For RtE > 85%, there shall be an incentive @ Rs. 0.50 per unit of excess discharge of energy considering system RtE = 85%.”