NVVN Seeks Developers To Build 1000 MWh BESS

NVVN, an NTPC subsidiary, has issued a tender for setting up a Battery Energy Storage System (BESS). This project will provide an energy storage facility to NVVN for charging and discharging the BESS on an “on-demand” basis in Rajasthan. The BESS would be developed to the requirements of Rajasthan Urja Vikas (RUVITL/ Buying Entity/ End Procurer) during the peak and off-peak hours. NVVN is accepting bids up till March 31st 2025.

The tender specifies that the bidder is expected to undertake, “Setting up the BESS and interconnecting it with the STU network, including the construction of the bay, will fall under the scope of the BESSD. This is technology-agnostic regarding the type of battery storage system chosen by the BESSD.” The tender aims to make an energy storage facility available to the NVVN for charging/discharging of the BESS. The primary objective of the project is to make the energy storage facility available to the NVVN for charging/discharging of the BESS.

The Buying Entity shall secure the charging power for the BESS project, preferably from renewable energy sources (BESS Charging Sources), and fulfill the remaining requirements through other sources.

The tender states: “The NVVN BESS project has a total capacity of 500 MW/1000 MWh. The minimum bid size is 100 MWh (50 MW x 2 hours). Each specified location will have a maximum capacity of 125 MW/250 MWh. For each 125 MW/250 MWh BESS project, only 17,500 sq. meters (1.75 hectares) of land will be allotted to the BESSD.”

The BESPA will be valid for 12 years from the scheduled commissioning date (SCD) of the project or the date of full commissioning, whichever is later. Any extension beyond this term shall be based on mutual agreement between the BESSD and the BIA.

Responsibilities of BESSD

The BESSD will be responsible for installing, operating, and maintaining the BESS to provide energy storage services to NVVN on an “on-demand” basis. The BESSD must guarantee a minimum system availability of 95% on a monthly basis. Any shortfall will be subject to liquidated damages, which the BESSD must pay to the BIA, enabling NVVN to remit the amount to the Buying Entity under the BESSA. The amount of liquidated damages shall be twice the capacity charges for the capacity not made available.

Additionally, the BESSD must ensure a minimum AC-to-AC round-trip efficiency (RtE) of 85% on a monthly basis.

The tender also specifies the project timeline: “The Scheduled Commissioning Date (SCD) for commissioning the full project capacity is set at 18 months from the Effective Date of BESPA.”

Viability Gap Funding

The BESSD must submit documents or lease agreements proving possession or the right to use at least 90% of the required land area at the time of financial closure. This land must be in the name of the BESSD for a period not less than the complete term of the BESPA. In cases where private land is leased, the lease agreement must permit the transfer of land lease rights to lenders or the Buying Entity in case of a BESSD default.