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Govt issues tender for 500 MW standalone battery energy storage systems

ANI | Updated: Apr 16, 2022 18:43 IST

New Delhi [India], April 16 (ANI): Solar Energy Corporation of India Limited (SECI), a Public Sector Undertaking under the Ministry of New & Renewable Energy, has issued a tender for setting up 500 MW/1000 MWh standalone battery energy storage systems (BESS), according to an official statement released on Saturday.
It is a first-of-its-kind tender in the country. It will provide Discoms with storage facilities to be used on an "on-demand" basis.
The tender has been issued under the standard bidding guidelines issued by the Ministry of Power in March 2022. The total capacity to be set up under the Request for Selection (RfS) is 1000 MWh (500 MW x 2hrs), which will constitute two projects of 500 MWh (250 MW x 2 hrs) capacity each, the Ministry of New and Renewable Energy said.
The Projects will be installed in the vicinity of the Fatehgarh-III Grid-Substation of the ISTS network, in the State of Rajasthan. The Buying Entities will be offered the storage capacity to charge and discharge the same daily through RE power, as per their energy shifting requirements, it said.

The projects will be set up on a "Build-Own-Operate" basis, with the connectivity and necessary permissions being under the scope of the project developer. Land for the projects will be provided by the CTU to the developers on a right-to-use basis.
SECI is the implementing agency of this tender and will be procuring capacity on behalf of the Buying Entities, charging a facilitation fee in the form of a trading margin.
A unique feature of this tender is the composition of capacity offtake. Out of the total capacity being installed under the tender, 60 per cent of the capacity will be off taken by SECI on behalf of the buying entities, and the offtake of 40 per cent of capacity will be the responsibility of the developers, through third-party or market sale.
Thus, through this tender, the Government provides substantial support for market development in the energy storage domain. Out of the 60 per cent capacity off taken by SECI, 30 per cent will be earmarked to be used by National Load Despatch Centre, Power System Operation Corporation Limited for grid ancillary services.
The tender marks the first tranche of the Government's immediate target of setting up 4000 MWh of Battery Storage Capacity as part of achieving increased penetration of RE in the national grid. (ANI)