The Solar Energy Corporation of India Limited (SECI), a public sector undertaking under the aegis of the Ministry of New & Renewable Energy, has issued a tender for setting up 500 megawatts (MW)/1000megawatt hour (MWh) standalone battery energy storage systems (BESS) in India.
It is a first-of-its-kind tender in the country and 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 is 1000 MWh (500 MW x 2hrs), which will constitute two projects of 500 MWh (250 MW x 2 hrs) capacity each. The projects are to be installed in the vicinity of the Fatehgarh-III grid-substation in the State of Rajasthan.
The buying entities will be offered the storage capacity to charge and discharge the same daily through renewable energy (RE) power, as per their energy shifting requirements. The projects are to be set up on a “Build-Own-Operate” basis, with the connectivity and necessary permissions being under the scope of the project developer.
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.
The term of the projects will be 12 years, with the scheduled commissioning date being 18 months from the date of signing of the battery energy storage purchase agreement (BESPA). Financial Closure is to be achieved within 12 months of the signing of BESPA. 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.