MSEDCL Seeks Bids To Setup 300 MW/600MWh BESS Pilot Projects

MSEDCL Seek Bids To Setup 300 MW/600MWh BESS Pilot Projects

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a tender to set up (300 MW x 2 hours) of BESS capacity within the state, with September 16th set as the last date for technical and financial bids.

The state distribution agency seeks to select bidders through a tariff-based global competitive bidding process. The projects are intended for “on-demand” usage under this bidding process. The tender outlines that Battery Energy Storage System Developers (BESSD) will be responsible for setting up the BESS. These developers are expected to ensure that the energy storage facilities are available for MSEDCL to charge and discharge on an “on-demand” basis.

The MSEDCL document further specifies the detailed performance criteria. It added, “This Request for Selection (RfS) is technology-agnostic regarding the type of battery storage system chosen by the BESSD, provided it meets the RfS definition of BESS and complies with the performance standards outlined in the RfS and Battery Energy Storage Purchase Agreement (BESPA).”

The tender added, “The total project capacity of 300 MW / 600 MWh must be located near substations within the MSEDCL network in Maharashtra. MSEDCL will handle land identification and allocation for these projects. The land will be provided to the BESSD on a right-of-use basis at an annual lease charge of Re. 1 per plot per year, facilitated through an agreement with MSEDCL. Project land details mentioned that the bidders ranked after the e-Reverse Auction will have the priority to choose their project location based on their ranking from the multiple locations listed in the RfS document.”

The tender document also mentioned, “The BESS will draw power from MSEDCL for charging and will inject power into the MSEDCL network as per dispatch instructions from state load dispatch center (SLDC), in consultation with MSEDCL. MSEDCL will supply the required power for charging the BESS while considering the minimum system efficiency under the agreement.”

While the uptick in BESS projects from multiple states is a welcome sign, it needs to be noted that the conditions for backup, at just 2 hours, are below the typically accepted norms of 4 hours expected of large BESS projects. One expects that the needs will be ramped up gradually for future, larger tenders as costs come down. 

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