NTPC 3 GWh Tender For Renewable Storage

NTPC’s renewable focused subsidiary, NTPC Renewable Energy has released a tender inviting developers for renewable storage systems across the country that will add up to 3000 MWh of supply. These systems would be connected to the ISTS grid too. The high minimum bid level indicates a search for large players able to execute at scale, especially when seen in the context of an earnest money deposit requirement of Rs 12 lakhs per MW. The last date for bids is March 11, 2022.

The projects are expected to support NTPC Renewable’s commitments for RTC (Round the clock) supply through ISTS across the country.

Bidders are expected to bid as per following categories.

• 600 MWh with 100 MW Capacity
• 1200 MWh with 200 MW capacity
• 1800 MWh with 300 MW capacity
• 2400 MWh with 400 MW capacity
• 3000 MWh with 500 MW capacity

Interestingly, project approved under existing state or central programs and not yet completed will be eligible to bid for the tender. projects already commissioned, or those that can be enhanced to meet the guidelines, will not make the cut. NTPC Renewable will enter into service storage contracts with successful bidders for 25 years, to match the profile of their solar/wind installations.

The tender signals an expected uptick for storage linked projects, as well as demand for renewable power on a RTC basis from discoms soon. A lot of this fresh demand will feed into the impending retirement of older thermal or gas fired power plants, as they near the end of their life, or PPA’s. Maintaining baseload power requirements will be the biggest challenge for renewable energy post 2025, as share of renewables in actual generation and the overall energy mix goes up. NTPC, as the largest baseload generator by a distance in the country is already committed to 62 GW of green energy by 2032. A large storage capacity will be a must to balance out this injection into the grid.

Keep in mind that India is targeting a 50% share of renewable generation by 2030, a significant part of which will be from solar+wind hybrid models which will require large storage capacities to deliver. India currently does not consider nuclear power as green officially, although it seems very likely that as a zero emission source, it might make the cut officially at some stage in the next few years.

The latest tender from NTPC follows its initial search through an EOI for developers and technologies, and smaller tenders earlier.