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MSEDCL Issues RfS for Pilot Projects of 300 MW/600 MWh BESS in Maharashtra

Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) invites bids for 600 MWh (300 MW x 2 hrs) Battery Energy Storage Systems Developers under tariff-based competitive bidding to enhance state energy management.

August 22, 2024. By EI News Network

Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) has announced a Request for Selection (RfS) for the development of Battery Energy Storage Systems (BESS) as part of a tariff-based global competitive bidding process. The RfS, dated August 16, 2024, aims to establish pilot projects with a total capacity of 600 MWh (300 MW x 2hrs).

These projects are expected to bolster Maharashtra’s energy infrastructure by enhancing storage capabilities, thus enabling efficient management of peak and off-peak energy demands. MSEDCL is inviting Battery Energy Storage System Developers (BESSDs) to undertake the setup and operation of these storage systems on a Build-Own-Operate (BOO) basis. The BESS will function on an "on-demand" basis to support the state’s Distribution Companies (DISCOMs) during varying energy demand periods. Successful bidders will formalize their agreement through a Battery Energy Storage Purchase Agreement (BESPA) with MSEDCL.

The bidding process will follow a single-stage, two-envelope system. Interested bidders must submit their proposals along with a non-refundable RfS document fee of INR 29,500 and a bid processing fee of INR 15 lakh plus 18 percent GST. Additionally, an Earnest Money Deposit (EMD) of INR 7,40,000 per MW, in the form of a bank guarantee, is required. Selected bidders will also need to provide a Performance Bank Guarantee (PBG) valued at INR 18,50,000 per MW before the BESPA is signed.

The RfS document and associated details, including the bid submission deadline, are accessible via the ISN-ETS portal and MSEDCL's website. Bidders must register on the ISN-ETS portal for bid submission and adhere to the outlined procedures. Any discrepancies or issues must be reported to MSEDCL within 20 days from the issuance date.

A pre-bid meeting will be conducted via video conference, and bidders must submit their queries by the specified deadline. The e-Reverse Auction (e-RA) will also be part of the bidding process, with further details provided to eligible bidders.

MSEDCL reserves the right to modify, amend, or cancel the RfS at its discretion. Bidders are encouraged to stay updated on any changes or clarifications through the ISN-ETS portal and MSEDCL's website.

The 300 MW/600 MWh BESS project will be located near MSEDCL substations in Maharashtra. MSEDCL will manage land identification and allocation, providing it to the BESSDs on a right-of-use basis at an annual lease charge of Re. 1 per plot. Land details are provided in Annexure-E. Following the e-Reverse Auction, successful bidders will have the first right to select their preferred location from the available sites based on their ranking.

BESSDs will receive the land for Right of Use (ROU) within 60 days from the Effective Date of the BESPA. Any delays in signing the ROU agreement will result in an extension of the financial closure and commissioning milestones.

MSEDCL will provide general arrangement (GA) layouts and single line diagrams of the substations, showing the designated BESS area. The BESSD must construct an approach road to the BESS site, ensuring it does not disrupt the sub-station’s operations and maintenance activities. Given the fire hazards associated with BESS, developers must install fire barriers between the switchyard and the BESS to prevent fire spread. The contact details for site visits will be provided separately by MSEDCL.

For grid connectivity, the project must comply with the Grid Code and Grid Connectivity Standards as set by the Central Electricity Authority (CEA) and other relevant authorities. The interconnection voltage must meet MSEDCL’s requirements, not falling below 33kV. The BESSD is responsible for all costs related to obtaining connectivity approvals.
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